Clarocity Corp CLRYF

RE:Capitulation?

[Trelawny]

Sueme,
Revenues have been going up ever since Q3 2016. Q2'17 was sequentially higher than Q1'17. Within the quarters there has been a trend where there are two months up one month slightly down.

The fact that the stock is down has nothing to do with performance of the company.

Regarding the debt

There was a plan floated last year to solve the balance sheet. But it was rejected by the very same group that you mentioned. This has caused issues. There was a standby facility put in place to provide comfort to the market that there was financing in place. The reason for it going from debt to debt is that it was the only practical way to structure it.

The company has stated that they will be working on the capital structure and the debt.

As there are company-friendly debt holders now we can plan to get the balance sheet cleaned up in a constructive and company-friendly way. Unlike the group you mentioned.

Regarding the warrants
We had been working on getting the warrants cleaned up since May. We had hoped to have it sorted by mid-june but have been flummoxed at every turn. We finally have it sorted out.

We had discussions with the warrant holders who were all supportive. We believe there is value in bringing them to a conclusion earlier than their December expiry.

The company has executed on pretty much everything that they have stated that they would - including growing revenues.  Would I like them to be further along? Yes, but I believe we are really only one quarter behind where I think we should be. And I believe that we can make that quarter up in the near term.

I believe that good things have been, and will continue to happen.

But for the history of this company, which is of no fault of the current management, the company has been moving at a very quick clip.


Best regards,


Colin Fisher