My answer to your question is that I do not know what can be done to retrieve shareholder value as I am too distant from the commercial dealings of CQU.
However, it seems that CQU have a lot of debt and currently have very little value and that their only salvation appears for shareholders to accept the offer by Co Investor, because if they don't the Company will be liquidated and it is unlikely that shareholders will receive anything. Co Investor has recongnised a commercial opportunity and seeks to aqcuire control, and possibly 100%, of CQU at a bargain price. There is nothing wrong with this, it is business.
When CQU relists, and this is subject to fullfilling various rquirements of the ASX, which are regulatory in nature (i.e. commerciality is not part of them)it is likely that CQU shares will be around $0.006 to $0.0075. so 10,000 shares will be worth between $60 and $75 take away the cost of brokerage and there is not much left. So if you a small parcel of shares, like more than 50% of shareholders do, sadly, they will be close to valueless.
Whether to participate in the placement? There was a very well written earlier post that says there are so many opportunites now that why risk investing further funds in CQU. I agree 100% with this There may be some profits in CQU over and above $0.006 cps but I think that the risk is too high and it ties up captital that can be used for better opportunties.
I have voted against all the resolutions because I do not like being ripped off. It is an emotive rather than a commercial decision which is never a good idea. The correct commercial decision is to vote for all the resolutions except the one that gives Co Investor the the right to underwrite the issue, because then you maybe compulsory taken over at an undefined price.
I hope this helps and I wish you luck with your future investments.
CQU Price at posting:
1.5¢ Sentiment: None Disclosure: Held
