thoughts

My thoughts on the cancellation of the directors take on NPAT profits.

Firstly, at present the directors have liabilities to the company by way of the partly paid shares they currently hold (25c and 50c shares paid to 1c). They were laughing when HSK was trading at $1.00 plus, but now it is a different story. As a result of the cancellation of the plan these liabilities are extinguished. I still am curious to how they placed a value on the plan....

Personally I have found the last few capital raisings hard to stomach when there are so many partly paid shares outstanding. Equity raisings are expensive for this company and substantial discount have to be offered.

Secondly, it is unlikely that the plan could have existed post takeover. It is extremely unpalatable to shareholders and I reckon CQT could and would have made much more of this point.