This update is really about Southland Health, but we’ll cover it under the guise of Bad Toys until it opens for trading on its own.
Southland is moving forward with the planned opening of its stock for trading like a herd of turtles. Believe me, glaciers move faster than these guys, but since the government is involved, you can’t blame it all on them.
At long last the company is sending out the Southland stock certificates to all who were entitled to the dividend. If you don’t receive your shares in the next couple of weeks, call the company directly at (423) 247-9560 and have them look into it.
Getting the stock certs has taken for ever, but it really doesn’t matter as Southland is not open for trading, and doesn’t appear to be ready to open for trading in the immediate future.
In order for Southland to trade at a reasonable market cap they have to solve two problems. They need to pay off GE Capital and the IRS. They are in default with both of them, but these are inherited problems from previous management.
The IRS is the problem. Southland claims it has a new lender who will pay off the back taxes and provide the company with operating capital. However, they won’t do it until they have a final number from the IRS so the company can be released from its liens.
The IRS has received several proposals to bring the matter to a head, but as a government agency they take their own sweet time about things.
If and when they can get a resolution to the IRS issue, they can then move forward to pay off their defaulted debt. I am told there is even money in escrow awaiting the resolution.
Until that time, there isn’t anything to think about or worry about. There is nothing to do but wait. If they never get this problem solved, your Southland stock cert might not be worth much more than wallpaper. If they do, it could be a huge score.
We’ll have to wait and see how it goes over the summer. In the meantime, I would not be a buyer of BTYH- perhaps if they close in on Southland opening for trading BTYH will become interesting again.
From day one I stated this was a move I had never seen done in all my years in the microcap world. Perhaps they will pull it off. I can’t say for sure, but on paper it seems feasible.
However, they are moving at a glacial pace- like LA’s 405 during rush hour- hurry up and wait.