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18.0¢ abarta resources limited

Ann: Response to ASX Query Letter, page-29

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HoganHound

1,422 Posts.

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20/11/19

13:51

Post #: 41531338
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Originally posted by DoubleDown!: ↑

I've read through the ASX questions and the responses and it seems pretty clear to me that the ASX recognised several errors in the reporting from AB1 and put the company in to a trading halt. A week later they had written to AB1 for answers to their questions and a little over two months later AB1 responded. The vast majority of the suspension period was AB1 gathering information and formulating their response.

Critics of the ASX as being dinosaurs and not understanding crypto have been proven quite wrong here, they are clearly on the ball and their probes unearthed several sloppy mistakes.

In my view AB1 really struggled to gather the required information from some of their subsidiaries, who in turn did not have the accounting expertise to provide the correct information. This caused AB1 to rush the ultimately late and inaccurate submission of the half yearly.

As far as the business goes this is all immaterial, however you'd hope that AB1, its subsidiaries and auditors now have their head around what it required and will not make these mistakes again.

I think there may be a short term drop in SP as a result of this but nothing to affect the company growth longer term. There have been a few posters predicting the doom of this company and accusing misconduct - this clearly tidies up any such claims. As has been the history of AB1, they have just been sloppy in a difficult and new accounting environment.

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i agree with the sentiment that ab1 may have struggled to gather information quickly enough which caused for a late submission of the accounts but my reading on this so far is that the half yearly was accurate. the query was looking at deeper clarification to each of the 1h year reporting but to your point there was no misconduct or incorrect accounting on the half yearly just many questions.

what i don't think happened is that ab1 would respond 2 months later that seems unusual i have seen asx require responses by certain deadlines and have no reason to believe otherwise so my assumption is there were a lot of back and forth discussions

all imo and dyor

Last edited by HoganHound: 20/11/19

AB1 Price at posting: 18.0¢ Sentiment: Buy Disclosure: Held
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