Majority of penny stocks are technically "insolvent" relying on cap raises to stay afloat. With MED we have a unique situation in that Gutnick has been siphoning company funds through the back door and using these same funds to keep the company afloat through convertible note shenanigans to ultimately gain full control. So I guess you could say without these convertible notes to give back stolen funds the company is insolvent. Whether or not ASIC can ultimately prove this is the case remains to be seen. But if they can, legally the next question is can Gutnick family and associated entities be stripped of their shareholdings/control? Because if their holdings are wiped from the register then that really would be a pretty sight for current holders and would change existing shareholder voting power significantly.
The viability of the company is too hard to predict given such corrupt management practices. Ie. where are the diamonds and revenue from them, where is the promised new scrubber and what is going on at site given wet season has ended?... I think Gutnick only ever stays true to his precious religion, hopefully that is about to change.
MED Price at posting:
0.6¢ Sentiment: Hold Disclosure: Held
