"CB, with respect, DB is no more right or wrong than you! Because in the end neither of you know!?!"
With respect, its not a case of CB or DB being right or wrong, its a case of questions being posited in regards to why we were not informed in the 4th April ANN that there was a penalty of $650,000 attaching to the oppies.
There is such a thing especially in regards to public companies for what the ASX calls "Continuous disclosure"
"Once an entity becomes aware of any information concerning it that a reasonable person would expect to have a material effect on the price or value of the entities securities the entity must immediately tell the ASX that information. "
The market was informed on 4th April 2012 as to the amount of shares, 130 mill, the price, 8.5 cents, and that there would be oppies (Nil consideration and exercise price of 12,5 cents)subject to shareholder approval.
Very detailed information. VERY DETAILED
What we were not told (and must have been known to Mr Askin and Mr White (Company Secretary) is that there would be a penalty of $650,000 if the oppies were not approved.
Why were we not told ?
An explanation may be that the penalty provision had not been agreed upon as at the date of 4th April 2012.
If that explanation is correct then WHY make the 4th April ANN ?
And secondly if that proposition is correct, WHEN was that penalty agreement actually made. ?
And thirdly, why agree to a significant penalty clause some time after the 4th April, when there was clearly a detailed contract already in place.
Why agree to the penalty provision, and potentially place the shareholders in an adverse position when a far better agreement was in place.
And importantly why was the market not informed as soon as this penalty agreement was made?
Please do not suggest that the penalty agreement was only made on or about 6 MAY 2012.
Please don’t insult our intelligence by suggesting that!
But assuming that it was made shortly before the 6th May,
I ask the question, why was it made when there was an agreement already in place that did not contain such a penalty cluse.
What was the urgency or requirement to explain why this penalty clause was agreed too.
Now, I don’t know about you, but I consider that NOT to be full and frank disclosure,
I consider that we were not fully informed at the 4th April 2012.
I ask WHY ? were we not informed ?, Mr Askin (and Mr Dan White) must have known about this at the time of the condition being made regarding the shareholders approval ,
WHY were we not informed about the penalty.
Questions requiring answers so that we do KNOW.
That is what I am saying
CB
CTP Price at posting:
45.5¢ Sentiment: Hold Disclosure: Held
