Integrity Gaming Corp. V.IGAM

So much fabricated rubbish

[Teflon2Hype]

The questions being asked are old and the correct answers are ageless, so why are so many going out of their way to create new and convoluted ones?

Are there investment companies that have a fixed minimum requirements for potential investments?

Yes many of the larger houses as part of their funds guidelines as set out in the funds prospectus will not invest in companies that do not meet one or more of the following.

a) Share price $5 or greater
b) Trades in good standing on a major exchange
c) Has made regular dividend payments to it's shareholders for a minimum of 1 year
d) Is listed on a recognized index

In addition to the above, the company's business can not violate the funds ethical guidelines (If they exist) and there can be no significant legal action pending against them.

What Mr. Macy told you by itself is true, but he forgot to mention that all of this does not apply to you in any way, shape or form. I guess that was just another honest oversight on his part.



Are reverse splits good or bad?.

Whether a reverse split (Consolidation) is good or bad is totally dependant on the motivation of the company for doing it.

If a company has achieved sustained profitability then the market knows they no longer need to raise funds by share issuance so it is viewed purely as house cleaning and is treated favourably.

If a company is not profitable then the market knows that it is conceding that profitability is not in the near future (Capitulating) so they need to get the share count down to raise operating funds by offering more shares to the market. If the company's share price is below 5 cents then the need is compounded due to the minimum price for a share issuance being set at 5 cents unless you apply and receive some form of distress exemption. The market never treats this favourably because it is now clear to them that the company is not executing on it's promise to become profitable as they previously stated, and that the shareholders are about to get diluted down once again

....and that a honest, accurate and simplified explanation of this whole thing.

[SilverSaver333]

Very good post Teflon. I was going to ask, don't they need to be at least a dollar to even be considered for tsx. Why not at least do a 1-25 split to make it worthwhile, if you are going to do it in the first place. Not trying to be negative, just got burned enough times on Reverse Splits. GLTA.

[KeithORichards]

I'm not sure I follow - I thought you said earlier today that they would have to do an equity raise to meet loan conditions? "Loan interest rates are based on security and that is why I figured that the creditor would have demanded an equity raise to lower their D/E  but obviously they did not. Why not?..Well once again that document is a secret. Read more at https://www

[Teflon2Hype]

"Aren't loan interest rates also based on the type of debt instrument" Yes and that is just an extension of what I said previously about interest rates being based on security. Different debt instruments offer different inherent levels of security within their structure. Loan security has many facets. Risk involved with what the money will be used for, company D/E ratio, level of

[KeithORichards]

Poydras will be providing more detail in the Q3 release and probably the annual as well. I've already addressed the fact that the lender is able to preclude them from releasing the whole agreement. As for your contention that not releasing the whole agreement, or significant details, is "unheard of," first of all that's a meaningless statement - how would that be proven? Second,

[honda777]

I ignoed Teflon a long time ago. Much better to read without the idiots.

[Teflon2Hype]

"As for your contention that not releasing the whole agreement, or significant details, is "unheard of," Just those covenent that if violated would have a detrimental effect on the shareholders. Given the shareholders are the owners of the company and management is in fact just their employees then I think disclosing such commitments is called for. "Everyone note that in our

[KeithORichards]

I don't agree Teflon that I am trying to deflect anything away from the company. Regarding the discount on the debentures, yes, that's an obvious fact. Does it reflect the financial communities' rational assessment of their worth? I don't know . . . I really truly don't. Some sellers may well have thought them riskier than the coupon reflected and chosen to get out. Someone

[Teflon2Hype]

"A few examples - the share consolidation . . . your response was that the only reason a company, unless they were large and profitable, would do a reverse spilt is to get the share price up to do a dilutive raise." To be able to do a share offering. Yes, even though those are not my words they do represent my sentiment... and how do you know that was not the original intent? The RS was

[VPofFNE]

I have to admit Keith, I'd like to know more about the debt aspect too. This is a VERY material part of the company - in fact, it's more than the entire market cap of the company. When I go to evaluate the worth of this company, I would like to know at what point does the interest rate start to ratchet down? All I know is that it goes down when the company is further de-levered. What

[KeithORichards]

Point taken, VP, and will be considered. We were in front of several analysts last week and we hope that one shop at least will pick up coverage soon. In the interim, if you would like to speak with Peter or James on this matter, let me know and I'll see if something can get set up. Keith [e-mail]