Summary & Conclusion
"The longer term future of COCO is not in doubt – the company will be dissolved and its assets sold.
As reported in the company’s most recent 8K filing with the SEC, the company has reached an operating agreement with the Department of Education that is intended to result in the sale of most of the company’s schools, the teach-out of certain other schools, and oversight of the company’s ongoing operations. Under the agreement, the company will establish an escrow fund with an initial deposit of $500,000, and bi-weekly deposits of $250,000 until the fund reaches $30 million. Additionally, the company will make deposit of $5 million on October 23,
- The company will also be depositing 35% of the net proceeds from the sale of any school, in which the net proceeds exceed $750,000. As reported in the 8K filing, the company will continue to seek additional sources of liquidity through new financings, additional cost reductions, and accelerated asset sales (or a combination of these actions). On a near term basis the stock is trying to find support, and several technical indicators are mixed.
Anybody holding on for severance? Jump!