There is nothing like a little controversy to spark debate and bring key points to the surface.  No one has asked where the money, management used to grab the GSA came from.  We know they either didn't have the money in December for the 9 cent raise or didn't think the return was great enough to warrant the risk.  I suspect that Windsor Bancorp had been putting pressure on management / the company for some time.  We don't know what the loan covenants were but surly they were very much offside.  With Windsor Bancorp allegedly threatening to seize the assets of the company management surely knew that even at 9 cents an investment was too risky.  Fast forward two months and suddenly management is flush with cash and eager to take out Windsor Bancorp.  They grab the GSA and now can do a structured receivership / bankruptcy under their own terms.  This doesn't mean that they will do this but when heavyweights like Rogers or Bell threaten to cut them off they have the ace up their sleeve in terms of telling them they will get nothing if they don't extend lengthier terms.  


But where did management get the money to make this investment???  Did Deslippe sell shares now that he claims he is no longer an insider?  Why would Rohrer put in any cash unless he knew there would be a huge return.  Receiving interest does not get you a huge return.  Bankrupting the company and getting a tonne of shares of the new company gets you a huge return.  Something to think about!  eh???  I'll state it again.  Why would a part-time Director who works as a home appraiser  put money into this unless he was told there would be a huge return??? 


Have a nice weekend.