Below is my complaint to ASIC lodged today. I suggest fellow shareholders read my complaint and if appropraite use the information contained therein to make their own complaint.
ASIC COMPLAINT DATED 16 JULY 2013
I am an investor in the ASX listed company Intermoco (ASX:INT)and hold ##,000,000 shares which I have purchased over the years for a total sum of $###,###. The shares are held personally and via my self managed superannuation fund.
My complaint is about a recent Right Issue conducted by the Company immediately prior to the Company going into Voluntary Administration. The Company raised over $250,000 under the Right Issue from shareholders and a further $400,000 in a share placement conducted at the same time as the Rights Issue.
Prior to the Rights Issue, on 22 February 2013 the Company advised that a convertible note issued to a substantial shareholder in the Company, the Copulos Group, had been extended for 12 months to 31 March 2014.
The Copulos Group convertible notes totalled $300,000. The voting power of the Copulos Group in the Company was 20.17%, on a holding of 990,694,694 shares as at 12 March 2013.
On 12 March 2013 the Company announced it had placed $400,000 to sophisticated investors at a price per share of $0.001, with a further $100,000 to be placed in the near future. The Company also announced a Rights Issue to raise approximately $1m.
On 26 March 2013 the Chairman of the Company wrote to shareholders in relation to the Rights Issue and stated "The Copulos Group has agreed to support the Offer so that Intermoco raises at least $1.5m including the recent Placement under the Mandate to sophisticated investors and issue of convertible notes."
At section 1.4 of the Rights Issue Entitlement Offer document dated 26 March 2013, it was said "The Offer is supported by the Copulos Group which has agreed to support the Offer so that Intermoco raises at least $1.5m including the Placement and issue of convertible notes. The Copulos Group had maximum voting power of 22.2% in the issued capital of the Company prior to the Placement(assuming the entire Mandate is placed), which reduced to 19.8% as a result of the Placement. The Copulos Group’s voting power in Intermoco shares may increase to 25.2% as a result of the Offer,depending on the level of take up of the Offer.
As a result of the representations made concerning the support of the Copulos Group to the Right Issue, I exercised my entitlement under the Rights Issue.
On 14 May 2013 the Company announced it had closed the Rights Issue and had raised $246,221 before subscription by the Copulos Group. The Company said "The Company's recent capital raising initiatives had an overall target of raising $1.5m. Those initiatives involved a placement of $400,000, a convertible note issue of $250,000, and the Rights Issue.Intermoco is now in discussions with the Copulos Group and other sophisticated investors concerning placement of approximately $604,000 from the Rights Issue shortfall, and/or an alternative funding facility, to enable the company to meet its funding target and pursue its current growth strategy. This includes completion of the balance of the Placement Mandate referred to in the announcement to ASX on 28 February 2013. Intermoco expects to be able to update the market further on these matters shortly".
Nothing was heard therafter.
On 2 July 2013 the Company announced a trading halt and on 3 July 2013 the company announced the appointment of voluntary administrators.
Quite obviously, the support of the Copulos Group to the Rights Issue was materially overstated and has dissappeared.
I am concerned the Copulos Group will now attempt to exercise its right as a creditor to take control of the Company's assets.
I also strongly suspect the misrepresentations of the Copulos Group and the Company have led to a misinformed market in INT shares and have caused a number of investors like myself to take up their entitlements under the Rights Issue. I also query what was said by the Company to the investors who took up the placement offer which raised $400,000.
I ask ASIC to now investigate the above and the conduct of the Company, its officers and the Copulos Group in and about the Right Issue.
AHL Price at posting:
0.1¢ Sentiment: None Disclosure: Held
(20min delay)