Clacko888 Why would ASIC investigate Bergen. This type of loan structure has been around for a long time. Surly the directors of APG understood the terms and believed it was the best option and shareholders overwhelming approved it.
From my experience, to minimize the impact on long term shareholders from this type of loan it relies on a constant flow of positive information from the company to soak up the new shares.
As Fasle9 said at the time "Both Colin Iles and Terry Cuthbertson are of the view that they are going very well. In my eyes a good deal. Much better than a loan secured with interest and payments leaving the company venerable."
Unfortunately the "Millions and Millions" deal did not eventuate and the completion of the plant upgrade to produce 5 tonnes of pre-reduced iron oxide/zinc oxide pellets has also falling through.
You can not blame Bergen for that.
APG Price at posting:
0.2¢ Sentiment: None Disclosure: Not Held
