Retail shareholders need to vote this down. A special resolution requires 75% of shareholders to vote in favour.
The timing of this is very suspicious and rushed, with major events occurring later this year:
1. AGM - with a second strike against rem report. This would provide an avenue to vote for a Board spill (which should have happened last year, but didn't). 2. Rem report - This should be voted down and the excess salaries paid to management reviewed/reduced. 3. Loans to executives - these should have bee repaid by now and haven't. What protection is there that these are converted to equity and shareholders diluted even further.
All management incentive shares out of the money may well be cancelled and new ones issued, at the detriment to patient shareholders.
I suspect that the Board has received advice from its financial advisor that go unlisted so that there isn't an ASX benchmark price to be able to do a trade sale or the like. Much better if management/Board deliver of strategy to improve earnings. That should translate to higher earnings.
LVT Price at posting:
3.0¢ Sentiment: Hold Disclosure: Held
