Colossus (T.CSI) down 29% as shareholders face massive dilution warning

Peter Kennedy Peter Kennedy, Stockhouse
0 Comments| January 2, 2014

Stockhouse Canadian Small and Micro-cap Stock Report for Thursday, Janurary 2nd, 2014 

TORONTO (SHfn) –  Colossus Minerals Inc. (TSX: T.CSI, Stock Forum)  lost another 28.6% to 5  cents Thursday after the company released an update on its financial situation. The company said it received a proposal from holders of convertible gold linked notes and Sandstorm Gold Ltd. (TSX: T.SSL, Stock Forum), which, if implemented, would offer the company the ability to carry on business activities with a view to a potential sale or future recapitalization.

However, Colossus said existing holders of common shares would experience massive dilution to the point where they would, in aggregate, hold approximately 1.7% of the outstanding shares after giving effect to the terms of the proposal.

Symbility Solutions Inc. (TSX: V.SY, Stock Forum) also fell 28% to 31 cents on heavy volume. Symbility is a provider of cloud-based and smartphone/tablet-enabled claims technology using the most comprehensive data for the property and casualty insurance industry.

The company said Thursday its largest U.S. customer has renewed their contract for an additional 12 months to December 31, 2014. It said the renewal will result in US$8.5 million of revenue to Symbility during 2014.

However, during the course of 2014, Symbility said the U.S. customer intends to transition off the Symbility platform in order to utilize a combined platform for both its underwriting and claims division, and as a result the contract will not be renewed in 2014. Symbility’s approximate revenue from its customer was $1.8 million, $5.2 million and (estimated) $5.8 million in 2011, 2012 and 2013 respectively.

Tethys Petroleum Ltd. (TSX: T.TPL, Stock Forum), meanwhile, rose 13% to 51 cents after the company said it has received governmental consent for the acquisition of a 56% stake in three blocks (Project Iberia) located in eastern Georgia. The Georgia-based oil and gas exploration company is already operating in Kazakhstan, Tajikistan, and Uzbekistan.
Select Canadian Small/Micro-cap Advancers (as of 4:00 PM Eastern)
Perseus Mining Limited (T.PRU, Stock Forum) 26.67%
Ballard Power Systems Inc. (T.BLD, Stock Forum) 15.53%
Allied Nevada Gold Corp. (T.ANV, Stock Forum) 14.06%
Seabridge Gold Inc. (T.SEA, Stock Forum) 13.54%
Detour Gold Corporation (T.DGC, Stock Forum) 11.22%
Select Canadian Small/Micro-cap Decliners (as of 4:00 PM Eastern)
Colossus Minerals Inc. (T.CSI, Stock Forum) -28.57%
Symbility Solutions Inc. (V.SY, Stock Forum) -27.91%
Horizons BetaPro S&P\/TSX Global Gold Bear Plus ETF (T.HGD, Stock Forum) -8.37%
Horizons BetaPro NYMEX Crude Oil Bull Plus ETF (T.HOU, Stock Forum) -6.22%
Horizons BetaPro COMEX Silver Bear Plus ETF (T.HZD, Stock Forum) -5.85%

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