Looking for contacts of Foreign Investment review board too.
The company 'Alita Resources' did not update the market in a timely fashion, traded very likely while insolvent and had a director (Mark Turner) disposing shares whilst having insider knowledge which was then not disclosed to the market.
An incident allegedly occurred at JBJ’s ( Jiangxi Bao Jiang Lithium Industrial Limited) facility on 18 May 2019. On 26 May 2019 JBJ notified Alita and claimed the incident was a ‘Force Majeure’ event and requested that next shipment in June be put on hold.
Discussions continued through June and July 2019 with the ‘June’ shipment of 11,000 tonnes of lithium concentrate dispatched on 1 August 2019, although payment of approximately 11% of the price was agreed to be deferred for approximately six months.
The market was not informed that JBJ had requested in May to put shipments on hold.
The market should have been at least informed about the difficulties with JBJ.
As a consequence Alinta became insolvent sometimes in the May/July period 2019.
The company has provided seemingly positive market updates on 11/07/2019 and 31/07/2019 which have further misled shareholders.
One of the directors (Mark Turner) disposed of 500 000 shares on 19/06/2019 whilst being aware of the delay/cancelation of shipments to JBJ whilst shareholders where left in the dark!
In my obinion these allegations need to be investigated by ASIC as shareholders have lost hundreds of millions of dollars.
A40 Price at posting:
8.2¢ Sentiment: None Disclosure: Held
