re: Ann: Healthzone announces completion of c...
Not invested in this stock and never have been, but thought it might be worth posting the information I have as I talked to the administrators over the weekend:
- CBA who was one of the largest creditors requested an audit a couple of months ago (I dont know why they request it, but the task kicked-off 2-weeks ago).
- The auditors found a major issue in the accounts before completion and reported to CBA.
- The issue relates to the number of accounts being owned/operated by the company and those account which are owed money. A lot of them are in 90+days receivables. i.e bad cashflow.
- CBA and the subsequent administrators are canvassing YA Global and other mjr shareholders for opinion. The company doesnt have the cashflow to pay its debts. Apparently CBA and administrators see a trade sale as the best option.
- Board has been replaced as at 18/11
- Administrators believe the company is profitable and have sufficient fund to continue as a going concern but they have a 3-months (90-day+) issue/shortfall. Somehow they need to close the gap. In the interim they will continue to trade in the marketplace. It may be that they need to raise funds, but this is unclear. I peronally cant comment on this as I havent looked at the accounts (so cant verify)
- Administrator have noted some irregularities in the accounts (no further details provided).
All in all it doesnt sound too bad as it stands. The worst case scenario is that they go down and all your money is lost, but again, doesnt sound like it will eventuate.
Good luck
HZL Price at posting:
26.0¢ Sentiment: None Disclosure: Not Held
