From memory he Company went into administration and then the biggest creditor, the Chinese company, which had a secured position, took over and removed the business to China where I believe it is still operative. It was all done according to administration/liquidation law here in Australia. Most unfortunate for small creditors and shareholders but that is the risk you take when you buy a spec company and even more so when your biggest shareholder/creditor is foreign and has a controlling interest. When the directors of CNX realised that they could not pay outgoings they must resign under our law or be personally sued. They did so calling a Trading Halt. The company is then put into Administration, and the Administrator (independent company) has full control as to who or what follows. It is usual that the biggest creditor takes the winning position if that is what they want. In this case the debt owing to them was so great that 'winner took all' which was in this case the ownership of the intellectual property. It had been obvious for quite some time that the Chinese company was the only one willing to keep CNX afloat and that they were aiming to take it over bit by bit. This is unfortunately the way of the commercial world here, but that may change a little after Covid as our government is taking a greater interest now as to who seeks to take over our great ideas. This is just my opinion, I am not an authority on these matters, but I do hope it has helped.
CNX Price at posting:
7.4¢ Sentiment: None Disclosure: Not Held
