Ann: Yowie Launch Social Media Advertising Campaign in US, page-105

I haven't looked to closely at it, but given the little information that has been disclosed to the asx by the company, that probably leads to two conclusions:

1. Directors are trying to hide something or incompetent (CEM probably believes this); or
2. Directors have had legal advice that a) claims against YOW have low prospects of success or unlikely to succeed, and b) the claims are not material and don't need to be disclosed.

My own view is that it is more likely that option 2 is unfolding.

On another note, I have read something on here along the lines that Hank is claiming something in the order of 6million for the balance of the contract? That is an ambit claim. He would have to mitigate his loss (ie try and get other contracts to manufacture chocolate to offset his loss) and, more importantly, before getting to damages, he would need to be successful in the first place, by establishing that YOW breached the contract.

I vaguely recall there being a statement around the time that YOW disclosed it was going to madelines that it had to do that by a certain date (31 Jan 2016?) otherwise if YOW was still with Whetstone a royalty payment in the order of a few million bucks would have fallen due and payable. That's what suggests to me that YOW board probably has had advice and formed the view that providing its out by 31 Jan (if that was the date) then there is little to worry about. Of course there was probably a termination clause in the contract, so assuming YOW complied with that it may be the case that they are all good.

I am reading between the lines but I think the above is more likely than a situation where the board's decided let's deliberately ignore and breach our contract with whetstone when he has our wrapping maching in his factory and to hell with the expense of defending a law suit for breach of contract.