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The CTS Global [CTS 0.43 unch] [link] board of directors approved a change in the company’s planned use of the money it took from investors in 2022. The change will take P20 million from the “client account management expansion” account and P89.7 million from the “general corporate purposes” account, and add these to the “scaling of global trading operations account.” CTS said that the client account management costs are covered by the company’s ongoing operations, and that the general corporate purposes money was earmarked for pandemic recovery efforts that are no longer needed. CTS said that the reallocation would “allow the Company to seize investment opportunities that align with its long-term objectives.”
MB bottom-line: Neatly, CTS did add that it plans to use all of the proceeds by 2028, so not a lot of urgency there from the CTS boys on getting that money into the market. By their last disbursement update in April, they’d spent less than half of the proceeds. That’s a lot of dry powder. I don’t doubt that the P109 million that was reallocated is better used for investing, but why is it taking so long to get this money active in the market? Where’s the bottleneck? Are they struggling to find traders? There’s just not a lot of communication out of this company, which is sad because it’s trading just a tick off its all-time low and is now down almost 60% from its IPO. I think IPO buyers are entitled to a better understanding of what this management team is doing with their money.
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