RE:RE:questions regarding recent trading haltHi Sepi, thank you for your response. I primarily invest in the junior resource sector, but given the small market cap of CHAL and that it also trades on the TSX there are some similarities to draw upon. The major issues/complaints you run across in the junior resource sphere are how management treats the company and its shareholders. Some managment teams treat the company as a "lifestyle company" whereby they promise the moon, then do just enough to keep investors hanging in there all the while continuing to dilute the share structure to raise capital for "general corporate purposes" which effectively means paying their bloated salaries. Or, they will give themselves or their buddies or their preferred partners, etc. the sweetheart deals of low ball warrants or options, etc.
CHAL certainly isn't immune to these type of games, but I don't think out and out fraud is what we are facing here. The timing of the trading halt, which coincides with CHAL missing their filing deadline seems to indicate the TSX will not allow them to trade until they solve their transparency issue, which I hope is, as alluded to by management, due to situations beyond their control. I can attest to auditor issues since I manage the audits at my company and we had such a problem a few years ago when one of the primary tax auditors passed away and another took another job. Our auditors had to scramble, but in the end the audits were delayed, nothing nefarious, just circumstances beyond our control.
Thankfully CHAL is only 1% of my portfolio, but I do feel for those that got caught up in the green revolution and put 10% or more into the weed stocks.
PS Agreed that an equity converstion is unlikely, which would mean issuing new shares at a lowball price to pay off the debt, which brings us closer to the days when we had a bloated share structure prior to the share rollback. As you said, just gotta hang in there.