I have been reviewing the annual report and the AGM Notice and Proxy Form and so many questions spring to mind that I thought I would see if the rest of you have the same concerns as me.
ITEM ONE - FINANCIAL REPORT
Page 40 of the Annual Report contains the independent auditors report and they talk about carried forward losses of $40M which indicates a condition of material uncertainty which may cast significant doubt about the ability to continue as a going concern.
I think unless there is an announcement of a cash injection by next Friday then EVM should probably go into administration, what does everybody else think?
ITEM TWO - RE-ELECTION OF DIRECTOR
Based on Item One, the fact that David Galbally resigned 2 months ago, and the fiasco with Valentia, I am a little concerned about voting for this resolution
ITEM THREE - REMUNERATION REPORT
Page 4 of the annual report shows revenue and losses for the last 5 years and we have consistently lost approximately $1.5M per year of which $944,000 is salaries for 3 people (Roger, Chris and Kim). Also $240,000 per annum for a communications manager seems a bit steep. In fact Chris Davey got a $42,548 salary increase last year which is almost 15% and seems a bit excessive in light of the current business climate.
ITEM FOUR - APPROVAL OF ADDITIONAL PLACEMENT CAPACITY
With 560Million shares on issue EVM can issue up to 15% but now they are asking for another 10% on top of that which means 140 million shares can be issued, unless they are at a significant premium to ten cents then there will be a bit of dilution.
ITEM FIVE - PUGET RESOURCES
Looks like they tipped in $100k late last year at ten cents a share and got issued some 20 cent options, don't know who they are but doesn't seem too bad.
ITEM SIX - JAMES KENNY
Looks like he tipped in $250k late last year at ten cents a share and got issued some 20 cent options, don't know who he is but doesn't seem too bad. However linked with item 1 and 5 makes you wonder about the finances of the company.
ITEM SEVEN - ISSUANCE OF OPTIONS
I don't know who these people are but my understanding is that they could have exercised their options during the trading halt as can be seen on page 13 where Mary Luckhurst and Chris Davey exercised options on the 16th May, 26th August and 7th September. Also why are options being issued at a discount to the current price, and why aren't these options made available to other existing shareholders.
ITEM EIGHT - ISSUANCE OF OPTIONS
Same as above, and why do we need a separate item for Andrew Draffin, surely he should be included in Item seven.
ITEM NINE - ISSUANCE OF OPTIONS
Same as above and why do we need a separate item for Roger, surely he should be included in Item Seven. Does this mean that Roger can vote on item 7 and 8, Andrew can vote on Item 7 and 9, and the mates of EVM can vote on item 8 and 9. All seems a bit strange to me.
The more I look at this the fishier it seems and unless there is a rabbit pulled out of the hat in the next few regarding funding I am inclined to vote against all of these resolutions. Would be very interested to hear other peoples thoughts on the matter.
EVM Price at posting:
10.0¢ Sentiment: Hold Disclosure: Held
