...CTTC's announcement of a "liabilities purchase agreement"...what is that anyway?
Are they selling their liabilities? If so I've got a whole stackful here that I'd be happy to let go real cheap.
In any case, CTTC doesn't exactly make clear what they are trading.
The SEC law mentioned in the PR exempts from registration stock used for certain specified exchange transactions.
Usually it's like when a company gets behind on a bill and issues stock to pay it off.
In CTTC's case I don't quite get it.
They have no claims or securities worth 2 million bucks that I can find. That leaves a room filled with unsold calmare devices.
Are they planning on trading machines for what -- more CTTC stock?
Or for stock in another company?
In any case, the 2 million in obligations to "existing creditors" sounds like what the company currently owes the chairman of the board.
Overall, it sounds mostly like someone announcing, "abandon ship, chairmen of the board first!!"
Looks like a great idea.Takes the uncertainty out of the equation so they can get a bigger financing deal. Who wants to finance the company to just pay off debt. This gets rid of the debt and gives them a clean balance sheet.
Sentiment: Strong Buy