Nice post JDR5. What a crazy day in terms of the way the stock traded which mirrored the confusion caused by the unconfirmed reporting by IFA. NAB Financial Planning is yet to release an official statement. The denials were not picked up by any other outlet. Personally I'm hoping the rumours are unfounded and am very much looking forward to the clarification from IAM tomorrow or Friday.
I can't help wondering about the wording in announcements from IAM. The Trading Halt referred to a MATERIAL COMMERCIAL AGREEMENT. Today's release referred to a MEMORANDUM OF UNDERSTANDING.
Even the general wording imo gave off a totally different vibe to a material commercial agreement which I've underlined i.e. "
The directors of Intiger Group Limited (IAM) (Intiger Group or the Company) are pleased to provide an update of recent business development activities and initiatives. "
I'm not in the legal profession but at any rate I would have thought lawyers if not legal teams would have been all over a commercial agreement. So IAM must have been confident to refer to it in the trading halt.
So after going through some legal definitions of the terms, I'm now wondering
if the trading halt was connected to today's announcement or if it is related to an announcement yet to come?
Memoranda of understanding are generally recognized as binding, even if no legal claim could be based on the rights and obligations laid down in them. To be legally operative, a memorandum of understanding must (1) identify the contracting parties, (2) spell out the subject matter of the agreement and its objectives, (3) summarize the essential terms of the agreement, and (4) must be signed by the contracting parties. Also called letter of intent.`
A commercial agreement is a contract typically between two business entities. It states its terms in plain language but includes warranties and boilerplate that have usually been reviewed by a business attorney in advance. This type of agreement can ordinarily be one of the standardized forms that are used over and over again with suppliers and business customers in the ordinary course of operations
The negotiated terms of a commercial agreement are particularly important. Basic contract law will look to the written terms of the agreement to identify the intentions of the parties, and will not consider outside circumstances unless there is a claim of fraud. Businesses are expected to know how to protect their interests, and part of that responsibility is to understand what constitutes a valid and enforceable commercial agreement.
I have no idea myself but they sound different.
But given the team at IAM, the seminar series, annual report, expansion and recruitment, interviews with PC and MF and the confidence and passion they exude for their company, products and service offer, the business model, experience, industry-wide reputations, professionalism and connections etc etc etc., I'm holding the faith in them! Looking forward to the next announcement.
(20min delay)