Relax @TraderP. If I mention it after it happens then I'll just be smug. If I mention before, I'm apparently smug! Why can't people just debate the issues? (sigh)
Q, what's the point of fixing governance at the same time a wipe out capital raise happens? HC should be demanding that Non-Exec Directors take control of the raising NOW given the Chair/CEO's conflict (via C2 Ventures) to salvage maximum value.
Here's a scenario ... new equity has the bargaining power, so, what's the likelihood of mgmt recapitalising the company by getting new shareholders to tip in (say) $10m at 2c and mgmt swapping their Con-Notes for equity at the same price? I think a funding scenario like this (or similar) is very real. Of course there would be a few hoops to jump through to get to this and defaulting on the notes may well be one of the ways.
If you think a scenario like this is unlikely, then there needs to be a credible and competitive alternative funding proposal. So do you reckon the NEDs are searching for this alternative deal as I think the above scenario would be sweet for management and the new investors .... but no-one else.
Just my opinion
CDX Price at posting:
13.5¢ Sentiment: None Disclosure: Not Held
