Hidden away in the back of this announcement is one of the more repugnant things I have seen recently from directors.
18 months after issuing convertible notes to clients of one of the Directors’ Corporate Advisory firm, the directors have now decided to "the Company intends to seek Shareholder support at the next General Meeting of Shareholders to convert existing Convertible Notes at a revised conversion price of 2 cents (currently 8 cents)."
The dilution to shareholders increases by a factor of 3, but the noteholders get looked after very nicely, as a result of changing the whole contractual basis upon which they were issued.
Shareholders of the company just have to accept a low share price, but if you are a client of one of the firm of one of MDB’s directors they change the issue terms for you.
Who are the directors trying to look after here? Their clients of their own advisory firm that issued the conv notes; or shareholders??
Certainly doesn’t look as though they are acting in the best interests of the shareholders to me.
MBD Price at posting:
2.5¢ Sentiment: Sell Disclosure: Not Held
