Okay - now today's 4C is out and "the final cost payment" has been stated, I thought it would be helpful to provide a financial breakdown summary to shareholders to serve as a reminder as to just how much cash the decision to defend the legal action cost us. (Taken from both Annual Report and the 4C's).
Here is the initial announcement - which, although it sounds bullishly confident, I do remember getting a bad feeling about at the time...
SYDNEY, Friday, 22July 2016, Cellmid Limited (ASX:CDY),
[...]
Advangen intends to vigorously defend its position and cross claim for payments already made for services not provided or properly provided by Ikon, as well as for any further damages. It will also ensure that there is adequate security for its costs, and if necessary, apply for an order that security for costs be provided by Ikon.
Cellmid, together with its operating entities including Advangen, takes its responsibility to prudently deploy shareholders’ capital seriously. [...]
Disputed Invoice Amount: $ 939,055
2 yrs Interest ...at say 5%pa: $ 100,000 (circa)
Legal Fees (both parties): $1,569,316
Court/Legal related Costs: $1,407,000
Approx Total: $4,015,371
Based on the Announcements and the Judge's summation & comments, it seems clear, in hindsight, this was stupidity taken legal action which amounted to financial harikari for CDY.
Based on the Legal Fees above, it also seems clear why some participants may have been keen to pursue the legal action. Beyond that, I am staggered why the legal representation would have recommended to the Board to defend the legal action. I just do not think the Board of any public company would overrule their legal advice.
Hopefully some lessons have been learnt - which, hopefully, will never be repeated!!
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