Book4Golf.com Corp., once a top stock pick of Yorkton Securities Inc., has used up a $1.25-million line of credit and said all directors except chief executive officer Phillip DeLeon quit because the company can't afford their liability insurance.
Mr. DeLeon, who extended the line of credit, will stay with the company and provide an additional $75,000 to keep it operating, Book4Golf.com said in a news release. The firm books golf tee times for more than 50 companies via telephone or the Internet.
Shares of Book4Golf.com rose to $22 in January, 2000, when the company's market capitalization rose to more than $1-billion. The shares touched their lowest today, trading at 1 cent on the TSX Venture Exchange, before closing at 2 cents.
Yorkton, which had forecast the shares could reach $100, is being sued for $520-million for allegedly failing to disclose potential conflicts of interest.
The firm is accused of recommending the stock while failing to tell investors of its financial interest in the company. Yorkton has denied the charges.