Debt for equity makes sense when a company is distressed. Loss making companies with little revenue should have no debt and be fully equity funded.
What this Board is doing is supporting the Chair and CEO at the expense of ordinary shareholders and providing little if any alternatives.
Telltale signs include C2V (ie the Chair and CEO) reneging on participating in the Feb 2023 placement (that they announced they had participated in) at 30c per share, only to then issue themselves with convertible debt instead that the company couldn't afford and then convert at 8c per share!!!!
And the Board allows them to do this because they control the Board. They say they are getting a 3rd independent director but haven't, and I doubt they will. An independent Board needs to opine on this BEFORE it goes to an EGM. I see nothing in the announcement that the Chair and CEO abstained from the decision making.
The Board would probably argue they are putting this all to shareholders to approve, however they are putting a devil's choice to shareholders.
Appalling corporate governance.
Just my opinion.
Debt for equity makes sense when a company is distressed. Loss...
Add CDX (ASX) to my watchlist
 (20min delay)
|
|||||
|
Last
5.1¢ |
Change
-0.004(7.27%) |
Mkt cap ! $15.00M | |||
| Open | High | Low | Value | Volume |
| 5.3¢ | 5.3¢ | 5.1¢ | $30.25K | 585.6K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 4 | 300000 | 5.0¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 5.3¢ | 20000 | 1 |
View Market Depth
| Last trade - 14.27pm 08/05/2024 (20 minute delay) ? |
|
|||||
|
Last
5.2¢ |
Change
-0.004 ( 3.70 %) |
||||
| Open | High | Low | Volume | ||
| 5.3¢ | 5.3¢ | 5.2¢ | 99368 | ||
| Last updated 12.17pm 08/05/2024 ? | |||||
| CDX (ASX) Chart |