What are the scenarios and CTIC's stock movement associated with Sept 4?
1. They say nothing.
2. They get priority review.
3. They reiterate the standard review.
What is the market's reaction to each of the scenarios??
Any intelligent replies appreciated.
Alleged ponzi scheme probed by NB Securities Commission
Hancox said it's alleged the men sold shares of two Quebec companies, CTIC and CITCAP, without providing investors with a prospectus — a prescribed dossier ...
See all stories on this topic Alleged ponzi scheme probed by N.B. Securities Commission
Last Updated: Friday, August 28, 2009 | 5:30 PM AT Comments2Recommend16CBC News
Four New Brunswick men have been ordered to appear before the province's securities commission over an alleged interprovincial Ponzi scheme worth an estimated $15 million.
Nearly $6 million of that is believed to involve about 63 investors across the province, primarily in the Grand Falls and Edmundston area, said Rick Hancox, the commission's executive director.
Hancox said it’s alleged the men sold shares of two Quebec companies, CTIC and CITCAP, without providing investors with a prospectus — a prescribed dossier of information about the companies.
It’s also alleged the men were not properly registered to make those sales, he said.
The news comes on the heels of the highly publicized case involving Montreal investment adviser Earl Jones, who is charged with four counts each of fraud and theft in connection with four former clients. Quebec's securities regulator alleges Jones swindled at least 50 investors out of at least $30 million in a possible Ponzi scheme. Jones was granted bail in July.
The four men involved in the New Brunswick case are Pierre Emond and Armel Drapeau, both of Edmundston, Jules Bossé of Saint-Jacques, and Robert Saintonge of Fredericton.
Bankruptcy sparked investigation
When Quebec authorities froze the assets of CTIC and CITCAP, the companies declared bankruptcy. That resulted in an investigation that led officials to believe there might be wrongdoing, Hancox said.
"There were signs that money coming in from recent investors was being used to pay off earlier investors. That type of action is indicative of a Ponzi scheme,” he said.
A Ponzi scheme is a fraudulent investment operation that pays returns to individual investors from their own money, or money paid by subsequent investors, rather than from any actual profit earned.
Ponzi schemes usually offer high returns that other investments can't, such as short-term gains that are either abnormally high or unusually consistent, in order to entice new investors.
It’s too soon to say how much money affected investors would get back, Hancox said. “But I would not expect people will get a lot," he added.
A hearing on the matter is scheduled to be held in Saint John.
Before I even speak my mind, My interest in this stock is near term, 6 months at most. Now, I cannot see this stock holding above $1 if it has to settle for standard review on pix. I doubt this last equity offering was enough capital to get them through another 12 months with everything on the go. Looking at the amount of shares they have out, the only thing that could help the pps is a 25 to 1 reverse split. We will know by Friday if this ship will set sail.
The market has reacted very cautiously so if the news comes out to be standard review we can see maybe a total of $0.05 drop. If PR is given then more investors will come on board since it means 2 things:
1. 4 months shorter for approval answer.
2. This drug is superior to any of its kind and will generate more revenue.
We should see a jump of $1.25 to $2.00
nothing is without risk but looking at both the up and down side. This is a good bet.
I don't know. I have a lot of CTIC.
I try to hope for the best and
prepare for the worst.
I have sells in for 25% of my
firstname.lastname@example.org 1.90 2.00
I have buys in @1.45 1.40
I will sell, hold or accumulate
the stock for the next 2 years.
Lets look at the events if the last week.
a single investor dropped 30mil into the stock.
This is a large sum. I would hope there was some DD completed
to at least have a feel for what will happen this week.