Quite honestly, we shareholders need to be taken out the back and have some sense slapped into us.
Just digging through some of this "performance share" debacle; firstly the 450,00 Performance Shares granted to Fraser should be rescinded on the basis of the misleading and/or incorrect information provided in his 3Y "Change of Director's Interest Notice."
~ the resolution to issue Performance Shares to Fraser, was "Resolution 7", pedantic what? you bet it is.
Currently, we contract out Secretarial Services, part of the service provided is guidance and ensuring that our Corporate Governance is maintained. How can we have any confidence in the service provided, if he can't get simple announcements correct?
~ In case anyone has forgotten, the Company secretary is Usher, also a joint director with Fraser in Geneva Partners!
The cost of Fraser's ""consultancy"" to the Company was at $3,000/per day and we were rewarded with .......... [add own expletives here]
~ there is no information to whether the consultancy provided by Fraser was through Geneva, Wolfstar or other?
WHY we need a slapping?
Resolutions 7 & 8 to issue Performance Shares to Fraser and Gordon had no actual figure!
~ It was at the discretion of the board - - we got off light?
Part of an addition complaint I have sent to the ASX & ASIC on these performance shares: ASIC may not act on this, but if their is enough backlash from shareholders maybe one of the two regulatory bodies might at least send a query to the company (well hopefully)
(e) The Board & Management invested $20,000,000 of the Cash/Cash Equivalent Capital Reserve of Firefinch Limited (ASX:FFX) in purchasing equity (shares) in the demerger of the Company's Goulamina Lithium Project into Leo Lithium Limited. On the 21st June 2022, Leo Lithium Limited (ASX:LLL) was admitted to quotation on the Australian Stock Exchange following a successful IPO. A confluence of events lead to Firefinch Limited withdrawing full years production guidance post a trading halt on the 27th June 2022.
Amongst the above mentioned (items (a)(b)(c) & (d)) the Company divested the equity (shares) held in Leo Lithium Limited on the 4th July 2022, with net proceeds of $12,900,000,
a substantial loss of Shareholders capital of $7,100,000 over the period of less than 2 weeks!
The Company released an Operational Update on the 4th July 2022 (10:10am) advising shareholders of the guidance withdrawal and being in discussions for future funding arrangements, but it was clear that the Company had $38,000,00 Cash, US$3,600,000 in gold bullion sales and a US$5,000,000 bank overdraft facility with Malian Banks. The Company also initiated immediate cost saving measure and plant improvements, to increase gold production and reliability. The sale date of the Leo Lithium Limited shares was after market on the 4th July 2022, which was a total lack of regard to the interests of the shareholders the board and management represent.
Furthermore, the Company's current cash position 7 months later is almost identical to its current position.
I find the company's board of directors performance over the period post the trading halt to be abhorrent and self rewarding to the extent of (as) examples over a 6 month period since the trading halt:
- a fee of $3,000 for consultancy
- increased salaries for changing board roles
- attempted recapitalisation package (subsequently withdrawn) that was not in the best interests and highly detrimental to shareholder value.
Inclusive but not limited to all the above, the company have advised the conversion of "Performance Shares" (14th February 2023) to 2 directors and the Chief Operating Officer - the Chief Operating Officer's employment was terminated in the December quarter.
The Company is also not communicating with the shareholders although, the company's own charter has a communications policy, but have opted to use a 3rd party PR firm at a further cost to the company's cash/cash equivalent capital balance.
cheers
(20min delay)