ASIC, and public integrity when it involves a “SECRET” loan from NAIF.
REPORT OF MISCONDUCT
MARKET MANIPULATION
On 12 December 2023 Genex Power provided an update on the construction and commissioning of K2H. At the time advice from the company was that commissioning of K2H would be in Q4CY24.
The link to the related ASX Announcement is at the bottom of this post.
Despite the commissioning, then anticipated to only be a year away, the Genex Boarddid did not provide then, or since, financial information about the cashflow likely to be generated for the company.
The Genex Board, (including the J - Power director), could, with input from the consulting hydro-electric engineers, have readily produced data on the probable flow of energy into and out of the fully operational K2H.
The Genex Board, (including the J _ Power director), could, by employing the Tesla consultants involved in the development and management of the Boulderscome Battery, produce scenarios on the likely generation of income from the fully operational K2H.
The Genex Board, (including the J - Power director), could have provided the Tesla consultants with details of the “SECRET” NAIF concessional loan to enable them and others to produce necessary financial information so the company could comply with continuous disclosure obligations to the ASX. The ASX which has totally ignored representations.
In fact, the Genex Board, (including the J - Power director), did not and still has not produced such information about K2H.
On top of that failure to disclose crucial statistics about K2H, the Genex Board, (including the J - Power director), failed to produce meaningful financial information about the cashflow being generated by the Bouldersome Battery.
The Boulderscome Battery had been commissioned a month earlier. See the second link at the bottom of this post.
The consequence of the Board’s withholding of information from shareholders and the market is that it successfully manipulated/influenced the price of Genex Power Ltd shares, over an extended period.
Ultimately the calculation of VWAP figures used in the J - Power bid were substantially reduced.
By doing what was done re disclosure articles like the following could be produced:-
The suggestion that J - Power was being very generous with a 27.5 cent offer was possible because of the MARKET MANIPULATION which had taken place.
The question is this:- will ASIC ignore its PUBLIC INTEGRITY obligations and seek to avoid an assessment of REPORT OF MISCONDUCT and thereby put a stop to the involvement of the Takeovers Panel? The Takeover Panel is required to take an independent role in takeovers.
Goldman Sachs simply is not a party that could, in this instance, claim to be an INDEPENDENT EXPERT; especially given its role in the legally flawed 2022 bid involving Kidston and Skip Capital. The conflicts of interest involving J - Power, the Genex Board, (including the J - Power director), the so-called IBC and Goldman Sachs are in plain sight.
The Genex Power Ltd Board, (Kidston, Craven, Dyson, Seshimo), and the Electric Power Development Co,. Ltd, (J - Power) have created a very complex situation with what seems to be a strategic yet ill-conceived and opportunistic takeover.
The takeover led to a REPORT OF MISCONDUCT, primarily concerning MARKET MANIPULATION by the parties involved. Handled properly it has and/or will involve six Commonwealth instrumentalities; ASIC, the Takeovers Panel, the Northern Australia Infrastructure Facility, the Department of Finance, the Office of Northern Australia and the Foreign Investment Review Board AND two Ministers, King and Gallagher.
The impartial Australian Public Service calls for frank, honest, timely and evidence based advice. What advice has been given and what dialogue that has gone on between the above parties AND to the ministers would be very revealing.
The very least Genex Power Ltd shareholders deserve is for the takeover to be evaluated by the Takeovers Panel. That makes the idea of Goldman Sachs providing an Independent Expert Report a joke - if the REPORT OF MISCONDUCT was not so serious.
With ASIC fully aware of the clock ticking, it seems the ball rests principally, at this point, with ASIC and Mr Peter Witham?
HLP
3 June 2024
Here are the the links referred to above:-
K2K - Construction Update:-
https://hotcopper.com.au/threads/ann-k2h-construction-update.7755325/
Bouldersome Battery Commissioning:-
https://app.sharelinktechnologies.com/announcement/asx/d6471db23669371a7ebd4c0d820af0e5
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