Elephant in the room, page-4

My previous post on the forum was 1st June last year

It pretty much sums up my thoughts then about the company and my reason for selling my substantial holding over the ensuing 3 months, back then.

The subsequent appointment of Michael Malone on 31^st Oct last year as Non-Executive Chairman was way too late in this company’s history to make any substantial changes to its future, be it long or short!

The management reins continued to be held far too tight and restrictive by those who should have had better sense to realise their ‘technical’ role in the company and extend to others, the opportunity to 'manage' the business in a business-like manner, moving forward. Instead they ignored the signs, fell victims to their egos and as a consequence, have arrived at this incredulous terminal situation.

By ASX / law, re-listing cannot happen until two new directors are appointed. The stringent legal requirements of directors under ASIC and ACCC laws, are now so strict that directors are held personally responsible for their actions / in-actions in matters regarding the governance of companies in which they hold directorships.

It is my opinion that this alone is why Malone and Fulton bailed out and why it will be all but impossible to find two new directors willing to personally and financially expose themselves through the apparent failings this company.

Even if they do find two new directors, I doubt they will be of the quality and standing required to resurrect this mess and help find ‘new money’ to get this business into a cash flow positive position. Any future CR is likely to be a dismal failure. Any other money source will likely come via a JV or large bank with demands that will relinquish effective control of the company. As we have seen, the current management of SAS will not be told how to run their business. Preferring to see it sink rather than see it survive at any cost…………….. only my opinion!

The warning bells for me was the ongoing lack of reported income from the 3Ds well after the final positioning and testing period and MOUs being signed to enable 3^rd parties to utilise the 3D’s as a commercial concern.

Last night in total disbelief, I watched Notre-Dame burning. I am now watching another catastrophe unfolding as SAS burns. Notre-Dame will be rebuilt. It will take many years and many dollars, but it will never be the same. SAS might have a similar path to its re-construction - but I doubt it.

Many lessons learned by many people involved in this business on many fronts. Best to accept those lessons, learn from them and plan to make better and more informed choices in the future. Kenny Rogers sums it up pretty well.