AB1 Share Price update, page-660

This stock was and has always been a speckie for me, so as things have rolled on I've always retained what started out as a micro-investment just to see where things end up. When I did my research into Animoca I had never heard of an NFT nor had anyone I explained it to. I'm not even a gamer. Not of that generation. The cool kids had Atari's when I as a kid. I did teach myself BASIC on the Commodore 64 by writing a crappy game as a kid though.

I agree with a lot of what you say but you make it sound like the ASX punished the company by "forcing" them to release quarterly reports when the ASX requires companies that are cash flow negative to lodge quarterly reports. That said, I do vaguely recall that they got caught out on how they booked their revenue. The ASX freaked out that they were structuring deals in crypto and at the time the ASX was freaking out about crypto in general. Animoca weren't the only company they de-listed.

When they first got de-listed I became a little disheartened because all the key personnel, the operations and assets are all domiciled outside of Australia. Additionally I was concerned about the social atmosphere in Hong Kong and I still am. I am now divested of all Chinese based ASX companies.

There was and still is nothing preventing the company from leaving the Australian parent entity an empty shell and strip it of its assets. So I was pleased to subsequently see the company continue to raise capital and issue shares to some very large shareholders, who have the wherewithal to protect their interests across jurisdictions.

I agree that it seems incredibly that the company could not have, by now, produced some audited books. Even if the audit was qualified. Surely there must be procedures for sorting out and cleansing the financial books for a company even if they have been in some disarray. There must be a way they can produce an audited balance sheet even if they can't necessarily provide audited statements of income and expenditure for the entire period.

It is a fundamental requirement of Australian public companies to lodge audited reports. At some point they will have to bring their governance into order as you say or else ASIC will have no choice but to start the winding-up process.

This has actually got me thinking about something else. Perhaps shareholders should question whether the company has been in strict compliance with the Corporations Act in regard to other governance matters. I was only just reading into the requirements around cleansing notices for the issue of new shares the other day because this is an area where companies often come unstuck due to administrative oversight. The Corporations Act that requires a cleansing notice or cleansing prospectus for the issue of new shares. In the absence of meeting those requirements, the entity issued the shares, cannot, under Australian law, sell those shares within twelve months of their issue. In fact, the entity the shares were issued to carries a legal liability if they do so.

Animoca made several announcements in 2021 and this year regarding issues of shares through capital raises and to Yat Sui. They all require either a cleansing prospectus or cleansing notice to be lodged with ASIC. Food for thought there.