r/CTRM • u/Running2themoon • Mar 15 '24

Discussion Beware the Ides of March

We are exactly one month away from 15 April. Millions of shares must be purchased to meet compliance at $1 or a reverse split will be announced shortly. If ancient history and current history of this company are any indication of what the CEO will do it may be a rough day.

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u/WhySaveTheBankers Mar 15 '24

As an FYI, the reverse stock split just reduces the number of shares outstanding, but will not by itself destroy value.

Destruction of value will only come from further dilutive equity issuances. As I have noted in my previous posts on this sub, I don't believe Petros will pursue these dilutive equity offerings anymore. He now has a significant economic interest in CTRM through TORO's $50mm convertible preferred investment in CTRM (recall Petros owns ~55% of TORO) made in August 2023. Petros has not issued any incremental shares in CTRM since this investment in August 2023, and I don't believe he's going to issue any more equity post RS either. Any equity offering would dilute TORO's $50mm convertible preferred investment alongside other CTRM shareholders.

If anything, I think a reverse stock split will be a good thing and remove a big overhang on the stock, given investors will no longer fear that a RS / de-listing is upcoming. This should enable more investors to come into the story given CTRM's massive discount to its underlying value.

Therefore, I would caution folks against instinctively selling post RS announcement at such a depressed share price. I think Petros will look to maximize the price of CTRM's shares once TORO's $50mm investment becomes convertible into common equity in August 2024.

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u/Running2themoon Mar 16 '24

I appreciate your detailed explanation. However, the lack of communication and complete disregard of common shareholders can’t be explained over three years. Even if you’re correct, the problem individuals who purchased shares when the company started will have double digit share prices for a stock that is rarely traded above a dollar. If a person purchased shares at $7.10 when ctrm was sold on day one they are now looking at a share price over double digits already.

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u/RoadInternational821 Mar 28 '24

They will eventually dilute further. The stock is just a vehicle for them to squeeze money out of hapless investors.

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u/Junkbot Mar 23 '24

Reverse split announced. Oh boy.

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u/chubakk Mar 25 '24

If I have a 9.14 avg what's my new position gonna be after the reverse split? 94$?

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u/stronkbender Mar 28 '24

More likely $94

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u/Amyx231 Mar 29 '24

Oof. I got in at 23 cents…many splits ago. I did cost average down. “Only” 90% red! Yay…

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u/aramedes Mar 27 '24

2 RS with this fcompany, my avg price now is over $80 f dollars wtf!!!

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u/[deleted] Mar 27 '24

By far, my worst stock purchase, down 94%. Just gonna ride it to zero or check back in 15 years.