Goodaye Doc,
Yep i share your anger and frustration re the Board issuing discounted shares and overly-generous Options to favoured investors, and to Board members.
It seems to me that this is standard practice for companies and brokers operating out of WA !!
Its a rinse-and-repeat exercise.
BUT :
we need to differentiate between the BUSINESS and the CORPORATE issues IMHO.
IMHO, the actions of the Board in this CR are secondary to the viability and prospects of the business.
If the business is crap, then it probably doesn't matter how many shares the Board and Sophs gifts itself, because those bits of paper will be worthless anyway.
However, if the business has real potential, has the funding, has the expertise, and has a genuine and demonstrated plan of growth, then those discounted shares and Options just represent greed. Yes its galling, but we need to focus on the path IXR is taking to grow Ionic Tech and Makuutu.
IMHO, these guys are actually growing this company. And that's the true test.
I am comfortable that Ionic has a genuine business, as we have witnessed very, very credible partners committing to doing business with Ionic. So, the business is not b...s IMHO. Why would the British Govt tip in hard funding? Why would Ford and LCM partner with IXR?
Makuutu might have lesser grades than VMM. but it is not all about highest grades - it is all about a level of viability and SECURITY OF SUPPLY CHAIN. (Thats IXR speak !) Look at USA, Europe, Korea and Japan - they ALL want security of supply of rare earths. AND Makuutu has already provided 3rd parties with MREC samples, and will be digging up further bulk supply soon. Now they are J/V to refine MREC to further strengthen that suppy chain and provide these desperate countries with further security.
IMHO, thats where we all should focus.
What has happened is that these investors in the Placement have actually used hard cash to get their cheap shares - so I guess thats a plus. The new Chair has actually now provided $2m of his own money - so surely he knows whats around the corner? At least he has confidence in the prospects of IXR.
If anyone genuinely wants to hold these people to account, one can lodge an application to the Takeovers Panel. Don't bother with ASIC.
Otherwise, yep, lets all wait until the EGM.
But, have a look at the Top20, because the Board, family and friends hold a big chunk of shares. The new shares which don't need s/h approval, will all vote in favour of resolutions.
If we all vote NO - then hopefully Board will hear us.
Write to the Board.
Go to the EGM.
Squeaky wheel gets heard.
I am focussing on the business. That's why I am "staying the course".
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