For those who've never heard of the Cockroach Rule, it alludes to the theory there's never just one Cockroach in the kitchen. If you find one Cockroach, there's a high probability you'll soon come across a nest of Cockroaches.
In line with the above, another Las Vegas property valuation was received this week from an AGI Whistleblower dating back to 2020. You can find it linked below.
The Las Vegas property was valued by Cushman and Wakefield at USD$54.8m on the 9th July, 2020. The other property in the AGI portfolio in Florida was worth an additional USD$3m approximately at the time. Total assessed property value was therefore approximately USD$57.8m.
Using the historical USD/AUD exchange rate on the 30th June, 2021, the properties combined value was approximately AUD$77.1m.
The AGI Annual report for Y/E 30th June, 2021 values the company's property assets at AUD$56.0m.
The AGI Y/E 2021 book value undervalues the property assets by 27%.
Unlike the previous valuation issue raised on these pages a few weeks ago, the attached document calls into question whether the company's property assets were deliberately Materially Misstated? The company knew the value of at least its Las Vegas property; yet it inexplicably placed a value in its audited accounts 27% lower than the value the appraiser provided to the bank for loan security.
Why has the auditor not picked up on at least one of the valuation issues?
Why have AGI's directors not made any public statements on the matter when this looks to the casual observer to potentially amount to Gross Negligence?
The attached valuation was prepared for Western Alliance Bank, the same bank that established a loan facility for AGI in late calendar 2024. Did Western Alliance Bank request an updated valuation from AGI prior to approving the new loan for $75m in December 2024 or perhaps at anytime in the preceding four years?
The AGI CEO, Board of Directors and Auditors clearly have some urgent questions to answer. There is clearly more than one Cockroach in the AGI kitchen!
If you have confidential information in relation to these matters, please be in touch via
AGIfightback.com.
The Valuation can be found at this address due to the large file size. https://drive.proton.me/urls/F8T5XGK1A8#6iIp2SmwO4EE .The valuation will also be available shortly at AGIfightback.com .
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