If they have dragged it out, it’s probably due to lack of cash....

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Cyph

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06/07/20

13:21

Post #: 45668996
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Originally posted by Thorium1: ↑

Some good analysis gents but some factually incorrect information too. Acquire learning did indeed lose their case and were fined $4-$5 million from memory however they immediately went into liquidation. The ATO and ASIC went after the directors and others including Andrew Demetriou who had previously been described as a Director/Chairman then suddenly seemed to be only a trusted advisor.

The case against Site by the ACCC relates to the alleged removal of restrictions and safeguards in attempt to sign up as many people (5500 in this instance) as possible prior to changes to the scheme by the federal government. It is true that an expert witness was struck out but there was also some pretty damaging testimony given by former staff members who had raised concerns with management.

My previous link relates to an attempt by site to stop evidence being heard in the AAT in relation to their renewal application. That case starts up again in the AAT again today.

I expect it will be some months before the outcome is known. If they lose in the AAT then that's it for their RTO in Australia. If they will in the AAT and lose in Federal Court, they can expect a big fine. Additionally, ASQA would likely go back to the AAT in this instance and look to cancel their RTO registration on the back of the fit and proper persons requirement.

If site win all cases, I expect they will sue the government for unpaid fees of circa $30 million from Vet Fee Help.

I am unsure of the impact of shutting down their Australian operations however with all the leased premises, staff and equipment, I imagine it would be costly.

This is now being pitched by brokers as a land development play in the Phillipines and they don't seem to be too worried about all of this legal action. That said, Site appears to have dragged this out as long and possible using every legal means they can because they were granted a stay which has allowed them to continue to operate while the case was continuing. If they are so confident, why bother doing this? I suspect they have been using the time to bolster the overseas operations and complete the land deal because perhaps they aren't as confident as they would like everyone to believe.

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If they have dragged it out, it’s probably due to lack of cash. It’s expensive to defend legal action and litigate as you would know.

Why raise capital and dilute shareholders if you can stall and use internally generated cash with no shareholder dilution?

SIT Price at posting: 3.5¢ Sentiment: None Disclosure: Not Held
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If they have dragged it out, it’s probably due to lack of cash....

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