The DNK Fiasco – A Timeline of Board Failures and Serious...

The DNK Fiasco – A Timeline of Board Failures and Serious ConcernsThe unfolding events surrounding Danakali Ltd (DNK) are nothing short of a case study in how poor governance, questionable decisions, and apparent self-interest can destroy shareholder value. Here's a breakdown of the stages of this disaster and why shareholders should be deeply concerned.1. The Board Fails to Prevent the avoidable ASX Suspension- DNK was suspended on the ASX for 20 months, leaving shareholders stranded without liquidity or market access, destroying value. Instead of addressing the ASX's concerns and ensuring compliance with listing rules, the Board allowed the suspension to drag on. This failure to act in shareholders' best interests set the stage for the current crisis.2. A $300,000 Payout for Cornelius’ Cancelled OptionsAfter months of suspension, the Board and a subset of shareholders decided to approve the cancelation of Cornelius's stock options – but not without paying him $300,000 in compensation. This payout is highly questionable:Why reward an Executive Chairman during a time when shareholder value is being destroyed?What justification was provided to shareholders for this expenditure?This decision reeks of misaligned priorities, rewarding the leadership for failure rather than accountability.3. The Board Refuses to Comply with ASX RulesInstead of taking the necessary steps to reinstate DNK’s listing on the ASX, the Board chose not to comply with ASX rules, which could have preserved liquidity and shareholder value. This inaction raises serious questions:Why did the Board refuse to engage with the ASX, knowing the suspension harmed shareholders?Was this decision in the best interests of the company or certain individuals?4. The Board's Decision to List on the NSXKnowing the low-liquidity nature of the NSX, the Board made the baffling decision to relist DNK shares on the NSX, a move that predictably destroyed shareholder value. The consequences were entirely foreseeable:The cash backing of $0.08/share is now irrelevant in a market where shares are trading at 55%+ discounts.NSX’s lack of liquidity has alienated investors, further devaluing the company.This decision was made despite no new projects or assets, with the sole reliance on cash backing as DNK’s intrinsic value—a fragile strategy at best.5. Cornelius Dominates Market Support with what has the hallmarks of a Selective BuybackPost-listing, it has become clear that Seamus Cornelius has undertaken 97%+ of all market trades, spending approximately $120,000 (small part of his cancelled option fee) to buy 3.24 million shares at an average price of $0.04/share—a massive discount to cash backing. This activity raises critical concerns: Potential Selective Buyback: Cornelius’s dominance of the buy-side resembles a backdoor buyback rather than genuine market participation.Artificial Price Support: By absorbing the sell-side volume, Cornelius has propped up the share price, masking the lack of broader market demand.6. Serious Concerns for ShareholdersThese actions and decisions present serious red flags for shareholders and market integrity:Board Accountability:Why did the Board refuse to and fail from the completion of the sale of Colluli, to comply with the predictable and well known ASX listing rules, leaving shareholders trapped on a low-liquidity exchange?What was the rationale behind paying $300,000 for canceled options when shareholder value was already in decline? Potential Market Manipulation Risksoes Cornelius’s dominance of buy-side trades (97%+ of activity) constitute artificial market support, distorting price discovery?Is this behavior in line with fiduciary duties and market manipulation regulations?Value Destruction:How does the Board justify listing on the NSX, knowing the predictable liquidity crisis and very predictable subsequent share price collapse?With no genuinely attractive new assets or projects, how does DNK plan to create value for shareholders beyond a discount to cash backing?Conflict of Interest:Has Cornelius acted in the best interests of all shareholders, or has his activity been motivated by self-interest and control of the market?Regulatory Oversight:Where is the accountability from regulators like ASIC? The dominance of buy-side activity, combined with a massive discount to cash backing trading prices, raises significant compliance concerns.Conclusion: A Call to ActionThe DNK Board has failed shareholders at every turn—failing to avoid suspension, refusing to comply with ASX rules, relisting on the NSX, and overseeing what appears to be selective trading activity to prop up share prices at steep discounts.Shareholders deserve answers and accountability. The regulators need to act. These events not only harm DNK shareholders but also undermine confidence in the broader market. It’s time for shareholders to demand an independent investigation into the Board’s decisions and Cornelius’s trading activity.Stay vigilant. Share your thoughts below—shareholders deserve better than this.