Ann: Monthly Appendix 4C October 2021, page-34

20 July 2005 - Potash Minerals (POK) announce they are acquiring Buddy Platform through a reverse takeover:

https://www.asx.com.au/asxpdf/20150720/pdf/42zxc70tks3n70.pdf

The BOD of POK unbelievably value Buddy at $50 million dollars and also throw Buddy $500k in option fees. Of course on BOD was Ananda Kathiravelu who has since been given a prison sentence for insider trading. The shareholder of Budd would be given 500,000,000 shares plus another 200,000,000 would be given as "incentives" (note these were conditional on laughable performance metircs).

Then we get to the financials for Buddy Platform that was deemed worth over $70m including incentives (note these were not released until after the cap raise):

https://www.asx.com.au/asxpdf/20151223/pdf/4341g2hjmx0rl1.pdf

Some key highlights (all in USD):

Cash on hand was just $60,489
Annual revenue of just $95,789
Annual expenses of over $1.2m (the largest being salaries the company couldn't afford to pay)
Accumulated losses over $4m
Liabilities around 3 times the asset base (negative equity of $663,322)
Assessed fair market value of Buddy Platform was $12,643.74

If we adjust this market value into AUD at 72c exchange rate it comes to about $17,500. This was "sold" to Australian "sophisticated" investors for $70,500,000.

So no, DM didn't pay for his stock. But you can keep pretending he's a genuinely nice guy.