Interesting Oblio Telecom Press Release

Titan Global Holdings issued a press release on Tuesday describing the problems they were having with their telecom division Oblio. It's interestting to see their take on why they think things are bad! Here is a quote from the press release that basically makes it look like their distributors are the ones who are screwing them not the other way around:

"Subsequent to the three months ended November 30, 2007, the Company's communications division experienced a significant decrease in sales and collections of outstanding accounts receivable. Many of the long-standing distributors of the Company's wholly owned subsidiary Oblio Telecom's products stopped placing orders for new product and stopped sending payments for previously placed orders. While we are vigorously pursuing legal action against many of these customers, the extended collection process has significantly disrupted the operating cash flow cycle of the prepaid international long distance portion of the Company's communication's division. These issues along with losses experienced in its network operations have resulted in the Company ceasing to do business as Oblio in the prepaid international long distance market. As such the Company evaluated the division's goodwill and other intangible assets for impairment based on changes in the business model. Based on the determination of management, the Company impaired the goodwill and certain intangible assets of Oblio."

So I guess they are trying to say that all of the distributors got together and just make a pact to not pay Oblio for their cards... yeah right! They also announced that they have given up the prepaid wireless business.

Read the full Titan Global Press Release