This would be enough to spook anyone with half an investing brain.
p 35 of that very long winded convoluted announcement! Not actually sure what it really said but that which have quoted below caused me sit and take notice.
Jeez they gave away an absolute truckload of shares. 3 billion on issue - simply staggering.
Consolidation + heavy dilution (and another suspension - see below) coming your way very soon. And some still wonder why it didn't get to their mythical 15c target - hmm ... hard to figure out.
"As part of the Company’s change in nature and scale of activities, ASX will require the Company to re-comply with Chapters 1 and 2 of the ASX listing rules. It is anticipated that the Company's securities will be suspended from the date of the general meeting convened to seek Shareholder approval for the Medcan and MCL acquisitions until completion of those transactions, the $5 million public offer, re-compliance by the Company with Chapters 1 and 2 of the ASX listing rules and compliance with any further conditions ASX imposes on such reinstatement.
There is a risk that the Company will not be able to satisfy one or more of those requirements and that its securities will consequently remain suspended from official quotation. The Company however, following the recent detailed discussions with the ASX surrounding these acquisitions and QBL’s re-compliance obligations, at the moment sees no reason why the Company should not be able to re-comply according with these conditions within a few weeks of the upcoming intended shareholder meeting."
QBL Price at posting:
5.3¢ Sentiment: None Disclosure: Not Held
