Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
Does this mean it is carrying on as a going concern or have I misinterpreted it?
32. The Transaction provides significant benefits to stakeholders of the COPL Group. Among
other things:
(a) the operations of the COPL Group in Wyoming will be preserved and will continue
uninterrupted in the normal course;
(b) the Transaction is supported by the senior lender under the Credit Facility, the most
significant stakeholder of the Applicants in these CCAA proceedings;
(c) the Transaction will preserve employment for applicable COPL Group employees;
(d) the majority of contracts with vendors, trade creditors and other counterparties will
continue in the normal course for the benefit of all parties thereto. Only a limited
number of contracts are expected to be designated as “Excluded Contracts” within the
Stalking Horse Purchase Agreement and, as a result, most contracts will continue in
the normal course following the closing of the Transaction; and
(e) on Closing, limited matters will remain for the administration and wind-down of the
CCAA proceedings and Chapter 15 Case
I have received 2 emails from the CAG this morning one entitled ' COL Holding' saying 'CAG delighted to confirm that it is to continue working with Mr Michael Cotter etc. And another 'Recent Fundraise' Action Required again just reiterating that CAG is delighted to confirm that it is to continue working with Mr Michael Cotter etc.
I am a bit confused. I have already submitted my holding as requested so unsure if it has been accepted or not. Can anyone advise please? regards Chickster
Dusterhater. RBM stated previously. Given the numbers of shareholders looking to get involved (we have been contacted by 500+ prior to closing applications as interest had more than been established), we do not envisage these costs to be in any way prohibitive, perhaps done on a banded basis. Mr Cotter is working on this a present and will fully explain the process to all when he invites applications to join said class action. So 500 plus potentially
Perhaps we should all be contacting Summit partners and pledging our support. If they were to become 'owners' through the stalking horse process, and knowing the assets, maybe they could be persuaded to run it as a going concern. The CAG could offer seats on the board and we shareholders could support them with fund raises through the proper channels.
Maidit308. I think the solicitation process is merely a term used for advertising or marketing the sale by bid auction. Under the circumstances I think this is the best way to get anything like true value for the assets.
BurrenBoy - Not necessarily so. A bankrupt company can achieve an effective restructuring of its financial assets by selling a majority of its assets. Therefore, the company uses a stalking-horse bid to ensure it gets higher bids at the auction. The stalking bid becomes the highest initial bid, setting the floor price that other bidders cannot underbid.
In return for offering the highest initial bid, the stalking-horse bidder gets various incentives, such as breakup fees and expense reimbursements. The incentives can help the company get a better initial offer before the auction occurs.
There was an article in Fraud magazine in 2022 re Wirecard. Seems they employed someone in finance who wasn't qualified for the job either.
Maybe we should make the Fraud Magazine aware of what has/is occurring here.
https://www.fraud-magazine.com/cover-article.