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04/10/16
07:48
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Originally posted by jake0002
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A/r says:
"Franchise Retail Brands Limited
LWP has invested $500,000 seed capital into Franchise Retail Brands Limited after balance date. Franchise Retail Brands Limited is planning its initial public offering and to list on the Australian Securities Exchange later this calendar year. Franchise Retail Brands Limited is seeking to acquire 5 established franchisor retail businesses in the food retail sector."
So it appears on surface, that LWP has invested $500,000 into a coy whose directors are the directors of LWP.
it is not apparent who the shareholders are of Franchise Retail Brands Ltd, but shares have been issued, and appears that monies have ben very recently invested.
The above info in the A/R is all the info we have.
So again, the question is should LWP have obtained s/h approval for this transaction? What about an Independent Expert Report?
I am sure there is a good explanation - it would be good to get some clarity on this investment, given the Graphene fiasco, the Omnet Loan etc.
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The after balance date events note in the accounts should have disclosed that this investment was a related party transaction.
I wonder if they have even read the corporate governance policies they signed off on and released in the past week.