Ann: Half Year Accounts, page-2

Nice to see some positive information in the half yearly accounts.
- The purchase price to acquire New Emerald Coal Pty Ltd at the allotment of $75,000,000 (less any outstanding loan, interest and any agreed liabilities). Details about how this value has come about would have been worthy information for shareholders. I hope the purchase agreement has a couple of earn out clauses.

Now the negative news
- Existing shareholders diluted to less than 5% of the company once the vend is complete.
- NEC shares at an issue price of $0.003 per share. Given the length of time shareholders have been waiting for this to occur, this should have been at higher price.
- Pan Asia has made available a secured loan of $1,059,070. A loan to a company being vended in smells.
- As if the smell of loan to NEC wasn't bad enough. Buried deep in the accounts at note 4 is "Whilst the directors believe the loan amount is recoverable when taking into account the value of the tenement licences held by NEC, NEC does not appear to have the sufficient working capital funds to immediately repay the loan and would require a capital raising to do so. On this basis, the directors have resolved to provide fully for the impairment of this loan to NEC." To write off a loan after only having advanced the funds in the past 6 months is absurd. (who wouldn't love a loan like this). The company must now announce that they have withdrawn access to further funds and thereby reduced the limit to the level of the drawn down amount. This is further destruction of the company by the BOD.