Texas DA Investigation Involves Coil Tubing Technology
Coil Tubing Technology has been contacted by the Harris County, Texas District Attorney's office. The Harris County, District Attorney contacted CTBG in connection with an investigation it is conducting, regarding allegations of violations of other parties, none of which are currently employees, officers or directors of CTBG or its subsidiaries.
CTBG, Coil Tubing Technology Holdings, Inc., CTBG's majority owned subsidiary, and the sole officer and Director of both CTBG and CTT Holdings, Jerry Swinford, have no reason to believe that they are a target of any investigation. Additionally, they have cooperated fully with the requests of the District Attorney, and CTBG does not currently believe that its operations will be materially affected by the investigation.
While the investigation temporarily interrupted its business, CTT Holdings' operations are now continuing and its employees are working diligently to minimize the impact of the disruption on its customers. Its entire product line is and remains available to its customers.
On Wednesday, December 12, 2007, CTT Holdings filed an Amended Form SB-2 Registration Statement with the Securities and Exchange Commission ("SEC") to register the distribution of 20,000,000 shares of common stock of CTT Holdings, to be distributed to the shareholders of CTBG, which represented 100% of the shares of CTT Holdings held by CTBG.
Once the Registration Statement is declared effective by the SEC, CTBG will distribute its entire interest in CTT Holdings, 20,000,000 shares of common stock out of the 21,000,000 shares of common stock of CTT Holdings currently outstanding, to its shareholders.
After the distribution, CTT Holdings will be a fully reporting company, separate from CTBG. While no agreement or understanding is in place with any potential market makers, CTT Holdings intends to seek a market maker to quote its common stock on the Over-The-Counter Bulletin Board subsequent to the effectiveness of its Registration Statement.
The Amended Registration Statement includes the results of operations for CTT Holdings for the first three quarters of 2007. Positive highlights of CTT Holdings' financials for the first three quarters of 2007 included the following.
CTT Holdings had net sales of $542,899 for the nine months ended September 30, 2007, compared to net sales of $191,126 for the nine months ended September 30, 2006, an increase in net sales of $351,773 or 184.1% from the prior period.
CTT Holdings had a total gross profit of $314,753 for the nine months ended September 30, 2007, compared to a total gross profit of $55,452 for the nine months ended September 30, 2006, an increase in gross profit of $259,301 from the prior period.
CTT Holdings had a net loss of $206,354 for the nine months ended September 30, 2007, compared to a net loss of $420,539 for the nine months ended September 30, 2006, a decrease in net loss of $214,185 or 50.9% from the prior period.