Ann: Arrowsmith North Updated BFS, page-214

I agree with you. A red flag mitigated to orange, because of the entry of a new partner.
But I'd say there were multiple red flags (some examples suggested in the SMH article), so only one can turn orange

RED FLAGS
* More than one director selling
* MD/CEO selling
* Selling ocurred over a short time frame
* Significant fraction of BOD holdings sold
* Company prospects heavily spruiked in the weeks/months prior to selling
* Lack of transparency - identity of German investor not announced at the time, shares stated to have come from the "TOP 20" to deflect attention from the fact that these shares came from sale of those held by the BOD.

GREEN FLAG
* German investor enters

All IMHO, DYOR