What to Expect from Caddo's Spin-Off
Caddo International, Inc. [[CADD.PK]] announced a spin-off for shareholders on record as of June 1, 2009, whereby they will receive one share of Petrolind Drilling Company and a warrant for 100 shares at $0.50 for every 20 shares of CADD that they own.
Petrolind has already drilled and completed over 10 oil and gas wells, and has a commitment to drill several more over the coming months. The company’s wholly-owned drilling rig, capable of drilling more than 3,000 feet, gives it the ability to cost-effectively seek further acquisitions.
Unfortunately, very few details are available about Caddo International or this proposed spin-off. In fact, the Pink OTC Markets has discontinued display of its quote because it has been labeled Caveat Emptor (Buyer Beware) because of the inadequate information provided.
Caddo International announced that they have begun working with Pink OTC Markets to become compliant with all of their filings, and recently setup an account with a title company to verify its ownership of the minerals on the 183 Acre Gravel and Concrete site in Dallas, Texas.
With only two trading days left until the proposed spin-off, investors have no idea what is included in the spin-off in terms of assets and, more importantly, liabilities. The company’s last SEC filing was made in 2006, while no material updates have been posted on Pinksheets.com.
In the end, prudent investors should stay away from Caddo International until it becomes a reporting company. However, the spin-off has created a kind of lottery ticket that speculators may want to take advantage of as higher volatility is likely in the coming sessions.
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