As China has limited plantations of olives and the Chinese are not big eaters of this delicacy I can only imagine that NKP’s directors may not understand “extending an olive branch" as a jester of peace and goodwill.
At the request of our leader I made contact with Abraham Li in China on March 2nd. He spoke for some 35 minutes on his mobile. Unsure what my bill will be. I should have reversed charges.
During the conversation Abraham spent most of the time talking and justifying his actions as MD. At the end of our conversation he indicated that Scott Li would ring me to continue the discussion. Which he did.
I then wrote this to both Abraham and Scott :
“Abraham, as mentioned your efforts in managing Nkwe during this difficult time are commended. You were able to expose alleged frauds ( not my words) and correct mismanagement committed by past executives. We know that you have had many difficulties with both Genorah and South African authorities as managing director. We also know that you are very upset with the public disclosure of certain documents. You are angry in the way some have treated you. All understandable feelings.
However what I am very disappointed about is that three years ago I invested in ….million Nkwe options as the company was in desperate need of financial assistance. I together with all option holders now are faced with the options about to expire this month. I rang you seeking your assistance in extending the options by two years. By doing so the NKP Board will demonstrate to all shareholders and option holders that the current Board is indeed looking after all minority holders interests. If a $ takeover is to be made for minorities it will make no difference to Zijin whether options exist. The money offered will be divided between shareholders and option holders.
If option holders like myself have lapsed options and a takeover offer is made we will demand a higher price for our shares in order to cover our losses.
You mentioned that you are unsure whether regulations allow options to be extended or replaced. Let me reassure you that several ASX listed companies have done that for shareholders. Suggest that Keith Bowker investigates as soon as possible.
Shareholders look to you and the current Board for leadership and continuous disclosure. We both need each other for Nkwe to progress towards becoming a platinum producer.”
A 20 min conversation with Scott Li primarily focused on the options. However he refuted that NKP had commissioned E & Y to develop a valuation report. I gave him details of my NKP source, the number of pages in the draft report, the valuation price per share and expected release date. He denied all.
Scott who is the spokesman for Abraham due to his poor English attempted to convince me that the company could not extend or replace options. Various reasons were given such as it was unfair for shareholders, Zijin had 100m options and it would not look good, the ASX would not allow, etc. The conversation ended on a positive note with my conclusion being that Scott would investigate the solutions I offered. My last statement was “Please take some positive corrective action before both sides take combat into the courts. History shows there are no winners once litigation is initiated.”
As time lapsed and emails exchanged since that conversation I note that Scott and the Board have no intention to accommodate option holders. His suggestion/offer to hold a meeting in Perth is primarily aimed at convincing shareholders that Zijin has committed no evil. He has not committed to anyone in writing that option holders forthcoming losses upon expiry will be remedied.
