Inchiquin - what a post,!. But you and Jollywatcher make similar points - management and a board with no industry experience or entrepreneurial spirit. The company was built on entrepreneurial spirit. Freedman funded the company until the Chinese came along in 2017. Freedman would have put in some $10m in risk capital. The Chinese put in some $10m in 2017-19 to fund development of the business. Sales for the period 2017-19 were nearly $50m with most from China. And now that XingYun has been settled, 95% of these sales have been paid by the customers. Some idiots on this forum are questioning where the sales were real!. The cash received from the sales all went through the cashflow statements. The big capital raising was $30m around April 2020. This was when McKinnon took over running the company, along with Parker. So as at June 2020 PET had cash of $35m, receivables of $15m, inventory over $4m and no debt. That is nearly $54m of liquid assets. Covid clearly affected business for the first year of the new management. But during this period they kicked a succession of own goals. They got rid of most long term PET staff. The called fraud in China killing the business. They got into a dispute with KPMG who refused to sign off the accounts as the company couldn’t prove the fraud, which is now renamed alleged fraud. De-listed for 2 years. They killed long standing sales relationships. McKinnon hired a new sales team. This sales team has been a disaster. The only sales have been to existing clients or projects already in the pipeline. Yet McKinnon and Parker were paid large salaries and the board paid them large bonuses, and for what? They did collect neatly all the receivables, which they had written off in early 2021. In fact nearly everything they wrote off in early 2021 has been recovered. Now I know why they got there bonuses. Today PET has some $12m in cash and some inventory, which they appear have no idea how to sell. The board has already terminated McKinnon and Parker, but this Board needs to go and let some people with a bit of fight and spirit take over.
PET Price at posting:
2.5¢ Sentiment: None Disclosure: Held
(20min delay)