The issue here is one of board competence and integrity.
Less than six months ago, the two independent directors supported a centre divestment/incubator strategy and share placement involving parties with known links to Genius. Now they have flipped their positions, most likely under the influence of a minority shareholder.
After almost six months of no meaningful shareholder communication, they released a trading update based on a naive turnaround narrative that has seen the share price hammered by the market.
Now they are asserting that the share placement they approved in fact constitutes an illegal takeover by Genius. I suspect that the Takeovers Panel will treat the application with the same disdain that the market has shown for the trading update. If so, those directors supporting the application should resign.
MFD Price at posting:
35.0¢ Sentiment: None Disclosure: Held
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