CI First Asset U.S. Tactical Sector Allocation Index ETF T.FUT

Almost $40 Million in the Hole

[panhandlephillips]

I do not own or have a short position in the company.
Before you place your bets please realize that these guys are almost $40 Million in the hole.
It will take them almost 44 years to dig themselves out from this deficit on a gross profit basis.  Never mind net profit.
Their only significant loyalty program seems to be Aeroplan which is Canada only.  This TADA thing they have going on is also Canada only. 
I think this folds before it goes anywhere... But I'm just spit balling.  Do your own DD.

[longrider1964]

Do they have debt of $40 million or shareholders deficit of $40 million cause the two are entirely different. In the first case it could be crippling and in the second case meaningless as the market would drive the share price up strictly based on momentum and hype. So which is it because according to the article i read they wiped out all the rest of their oustanding debt with a share swap at a 5

[regattadeblanc]

I don`t see any $40 million debt load either.  I also am under the impression they cleared up debt with the 5 cent share offering.

[jharbaugh]

By in the hole I believe you mean their deficit. That is $34M. They have no liquidity issues. Their balance sheet was negative as of the end of last year but their creative, non-dilutive financing from their NR on Jan 4th fixed that. Putting a title like "Almost $40 Million in the Hole" makes it sound like they are in Blockbuster-like liquidity crisis which they are not. A bashing title

[jharbaugh]

You are correct. This is their balance sheet as of Dec 31 at the bottom. Note their shareholders equity is positive $2M, and deficit -$34M. See the two links below regarding their financing. If you look at their balance sheet from Q3, it was -$8M in shareholders equity. https://tmx.quotemedia.com/article.php?newsid=39502677&qm_symbol=FUT:CAhttps://tmx.quotemedia.com/article.php?newsid

[jharbaugh]

Sorry for the poor format in my prior two posts. I'm still learning how to post on this site lol

[Dave2008]

Very very well written post.  One of the best I have ever read.  Bravo.  Congrats jharbaugh.