May not be as bad, I think the auditors would have said that they cannot determine what if anything will be recovered so only went with the proceeds from the sale of SEQ shares.
Personally I think its time for management to go, how can you take the word of someone who cannot raise funds, could not complete the transaction on time and now it appears that the business we sold we cannot get back as well.
Presentation statement: "During the due diligence process OneVue and its advisers were given information stating that low levels of secured debt existed in Sargon group giving OneVue comfort in taking a guarantee as well taking security"
This appears to be fluffy and nice but no hard checking of security and asking for their auditors to give a letter of comfort. This business has been losing money for years and you don't get external evidence that what you are being told is true. The security should have been the business sold and the hard assets we now have...
Someone else is now selling the business we paid around $40 million for and theoretically sold for $43 million. We should be able to callback all the free shares...
