With Arrium, go all the way back to the $754 capital raising at 48 cents per share in September/October 2014.
Arrium, based on the "advice" of Freehills (the legal adviser) and UBS (the underwriter) made no mention in the key risks or disadvantages section of the right issue prospectus as to the initial and ongoing closure costs of Southern Iron Ore Mine. 3 months after the raising, it was closed (late January 2015 or early February 2015)
Yet in February 2016 when the board reported to the market - the did make mention of the massive closure costs of the remaining Iron Ore Mine - A$350 million - if the iron ore price does not improved.
Why the difference I wonder????? It is all but admitting it should have been disclosed way back in September/October 2014.
And no one on that board has ever been brought to account or sacked for it - at least not yet anyway.
Stay tuned for the class action lawsuit - it will come - and may some of the money we have been ripped off for be rightly returned to its owners.
ARI Price at posting:
2.2¢ Sentiment: None Disclosure: Held
