Wow, what a document.I strongly suggest all shareholders read...

Wow, what a document.

I strongly suggest all shareholders read the entire document and today press .... twice.

These are some of my favourite bits ...

The majority of sales recorded in China in the period 2017 to 2020 (financial years) related tosales of items, materials or services that were not Phoslock®
(Oh boy ! Only 3%)
Excluding Phoslock® sales in relation to Xingyun Lake and BHZQ, total sales of Phoslock®constituted approximately 3% of China sales during that period

To date approximately $10 million has been spent dealing with these matters, some of whichare ongoing (criminal investigations).
The potential fines relating to each offence arethemselves significant, and there is the potential for regulators to commence proceedings for multipleoffences, and to seek orders under applicable proceeds of crime legislation.
$10 million just in legal fees so far and then the fines and possible repayment of "proceeds of crime".

the Company’s current manufacturing capacity would need to be expanded in order to facilitate a level ofsales that would allow the Company to move beyond a break-even position. This would also require asignificant investment in working capital.
...no reasonable confidence that new projects sufficient to sustain the Company can besecured within a foreseeable timeframe. Potential customers are either deferring commitments to proceedwith remediation works or are choosing alternative options to address those needs.

Raising additional capital was carefully considered. After approaching a number of major shareholders todetermine the likely level of support for a capital raise, the Board believes insufficient support would beforthcoming from shareholders to undertake a successful capital raise.

We have not been provided with any information or materials outlining how the RequisitioningShareholders intend to achieve re-quotation, or how their business plan would address thefundamental roadblocks to profitability articulated in this Explanatory Memorandum and theletter from the Chair.


And then there is ANNEXURE A, which no one has been brave enough to put their name or signature to.

It gives no explanation or evidence as to how the new board would be bringing improved skills, experience or expertise, or that they have the abilities to recruit appropriate executive staff. In fact Mr Bart seems to leave a trail of destruction in some instances.

It gives a very brief, non-detailed business plan involving -
Cost Cutting - the only costs at present are staff and legal. What's their plan ? It doesn't sound like they plan on investing cash reserves back into the business.
Rebuilding Relationships - with who, the Chinese? Re-recruiting old staff ?? Who ?
Tax Losses - utilise carry forward tax losses involves making profits - how do they plan to do this ?
Return to China - and there it is.