Having been reading more on the Indago link (IDG) it should be a big fat No vote. There are too many similarities between NEN and IDG to think they will do anything but squeeze and strip the cash out here just like they did at IDG. Both IDG and NEN were cash boxes. Directors holdings in NEN are small just as they were in the original form of IDG which meant they could quickly grab a leading stake and claim control. There was no plan given to use the cash at IDG just as none has been given by them here. But the plan looks pretty obvious to me. It is the same game plan as IDG. I bet that if they get control there will be a mix of a buy-back at less than cash backing so they can raise there ownership stake higher: Then perhaps a consolidation like what happened at IDG which looks like a manipulated plan to increase the illiquidity of the stock. Why would anyone conduct a 1 for 10 consolidation in a 20c small cap stock?????? The answer i reckon is so they can then argue the stock is so illiquid it should be delisted. Which is exactly what they did. And because they have done there numbers they have bought back enough stock to make their holding be about to vote for whatever they want. Those that have not yet sold by then (even at a below cash backing price too because that's what i bet they offer) will find they are shareholders in a private company with zero say and with zero knowledge of how much cash is there and what happens to it. I really don't know how this is allowed to happen or did at IDG. This proportional takeover thing is a head scratcher because to me it seems to go against having to launch a full bid and pay a premium when you get over 20%. Anyways, do your own searching and googling. Unless they are told no way be shareholders then my bet is NEN will look like the carcass of IDG in no short space of time and a big disproportionate chunk of the $20m will find its way into their bank accounts and not ours.
NEN Price at posting:
3.1¢ Sentiment: Hold Disclosure: Held
