Ann: ASX Update on Suspension, page-175

Summary:

- Karantzis and Co has pretty clearly dodgied the revenue numbers. He did this by entering one off contracts that mostly weren't related to normal ISX business, timing them for the window they needed to be in, and then paying someone else to do them. This had the effect of increasing revenue, and increasing expenses almost the same amount. It provides next-to-no profit, but allowed him to claim a massive amount of shares. 30% of the shares in the company. This has been referred to ASIC, and ASIC will determine whether there is sufficient evidence to cancel the shares. I don't know whether there is sufficient non-circumstantial evidence, but it's pretty clear that's what's happened.
- The ISX vs ASX court case is not related to this, and has nothing to do with reinstatement. That is Karantzis and Co trying to put the ASX on the back foot
- ASX suspended pending release of this information (SOR), and the SOR basically states in the conclusion that it won't reinstate until that info is known by the market, and directors can't offload the shares as soon as its reinstated (so that ASIC can complete its review). Karantzis and Co agreed to the escrow, but not to releasing the SOR to the market.
- Karantzis and Co have now spent lots of our money fighting to protect their shares (and are continuing to do so), and they can expect a class action against them from shareholders who were duped. I'd imagine this would have to be shareholders back when the disclosures weren't made. I wasn't a shareholder then, but I'm pissed at them now, so if there is one that I can join, I'd be in. We haven't traded for 6 months because the directors were trying to hide details of their performance shares. That's it.
- Market has now been informed of everything in the SOR (which is what Karantzis and Co didn't want released - basically that they'd done the dodgy to screw shareholders), and Karantzis and Co have agreed to escrow. There's no reason for them not to have agreed to the escrow, because if they didn't agree to it, ASX were just going to keep it suspended pending the outcome of the ASIC review (which also prevents them from selling).
- ISX will not be delisted. I have no idea where people get this idea from. There is not one reason for the company to delist, and ASX haven't once suggested that as a course they're seeking. The company is still making money. Not huge amounts, but a bit, so there's no financial reason. ISX might end up with some penalties from ASIC, but ASIC aren't keen on making us holders pay for director fraud - they investigate to protect us holders.

Remember that the SOR was written a while back, and ASX were already being threatened with an injunction, hence their statements in their conclusion about halting trading until the market was informed. Now that the SOR is released, the market is informed, so there actually shouldn't be a substantial hold up. There's only minor things left to do, so unless Karantzis and Co drag their heels to be petulant, it should be up and running again soon. The big hold up was in the information that's now released to market.