What a performance, page-38

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grindstone cowboy

21,703 Posts.

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05/03/18

08:03

Post #: 31519741
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Originally posted by Elcorp ↑

Interestingly, the loan funds had already been transferred to Aurigin Foods prior to the vote being taken for the approval of the Loan Agreement. So what safeguards have been put in place for shareholders in respect to this nil interest, unsecured $500,000 loan, given to Aurigin Foods, a Company assessed by Stantons to have a $nil interest value for shareholders? Very few if you read the small print. The nil interest, unsecured $500,000 loan becomes repayable upon the earlier of the date on which a Liquidity Event occurs and the date AAL is financially able to repay the Outstanding Monies, or such other date as the parties agree in writing. (the parties being themselves)
That’s a worry. No interest, no security, no set repayment date and no guaranty the loan will be repaid.
Mr Peiqi Zhang (our silent Director) recommended that Shareholders vote in favour of Resolution 2 for the following reasons:

the advancement of the Loan will assist Aurigin to establish its business, which in turn, increases the likelihood of Loan repayment

That sounds like trouble brewing to me particularly taking into account Annie’s past history.
Annie Guo was a director of Eagle Nickel (ENL) in Jan 2014 when she and the board gave a $700,000 unsecured loan to a Chinese business. In Dec 2014 the company wrote off the debt giving it full impairment. Annie resigned from the ENL board a month later in Jan 2015.
An unsecured loan can be written off by the Directors at any point in time. It seems a huge conflict of interests to me where our Directors are in a position to make that decision relating to a company they have control of.
Let’s hope history doesn’t repeat itself …. too late now anyhow, the money has already gone from DAU’s coffers.

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"That sounds like trouble brewing to me particularly taking into account Annie’s past history.
Annie Guo was a director of Eagle Nickel (ENL) in Jan 2014 when she and the board gave a $700,000 unsecured loan to a Chinese business. In Dec 2014 the company wrote off the debt giving it full impairment. Annie resigned from the ENL board a month later in Jan 2015. "
Was the Chinese business a customer or a party related to the board? Strange no recourse for shareholders?
DAU Price at posting: 2.6¢ Sentiment: None Disclosure: Not Held
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