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

Debt negotiations

[BayWall]

 

Futura Loyalty continues debt negotiations

2012-09-11 16:55 CT - News Release

 

Mr. David Campbell reports

FUTURA PROVIDES UPDATE ON DEBT NEGOTIATIONS

The Futura Loyalty Group Inc. is continuing discussions with various debtholders relating to the conversion of their debt into shares in the capital of the company or in some cases, extension of the maturity dates of their debt. Discussions are continuing, however, as at Sept. 10, 2012, debtholders holding a principal amount of $1,972,000 of the company's total principal amount outstanding of $5,143,590 have agreed to convert their debt into shares in the capital of the company subject to the company completing a consolidation of its shares which was approved by shareholders at the company's most recent shareholder meeting. There is no assurance that such consolidation will be completed and the board of directors has no current intention to effect a consolidation. The board of directors will determine the timing or necessity of a consolidation based on its continuing fundraising efforts and market conditions, and any consolidation will be subject to receiving any required regulatory approvals at the time of such proposed consolidation. The company is in discussions with subordinated debtholders holding a principal amount of $471,463 and having a maturity of Aug. 31, 2012, but no arrangements have been made as of the date hereof. Futura will keep shareholders apprised of new developments relating to these matters as negotiations are settled.

[joeydalton]

Baywall what do you think of that....?  are we sinking more.... or is there hope....? are they slowly preparing us for the the 1 for 40....ill answer this one...the answer is YES

[BayWall]

Like mentioned before, it's the debt holders who dictate the terms now. They want a rollback done first before doing the shares for debt transaction.   It's also important for Futura to reduce their interest expense which is almost $1 million a year. With the debt plus interest on the books, it's tough raise money with an equity financing. Management is addressing

[BayWall]

I'm not an expert on this, but the rollback must occur before certain debt holders will convert their debt into shares. I assume that with the stock trading at near zero, it doesn't easily facilitate debt conversion.   Some of the lenders were David Beutel, Oakwest and close associates. Are these the people asking for the rollback. Debt has kept this

[supercableguy]

Hi, i would want more shares if i was going to convert debt into shares.....get the shares.... let stock move up ....sell ....then roll back.....short sell the stock near to zero....buy a lot of shares again....