Look very carefully at the offer document as to who the underwriters are - it does appear as "self-interest" underwriting by two directors and the (now ex-) company secretary for only 200K of the "Rights Issue" - i.e. partially underwritten which just so happens to be the value of the "conversion" of debt to equity through Related Parties: Dick Tracey (140k); the Professor (40k); and CoSec (20k) - who coincidentally resigned his position July 12, 2018.
If my memory serves me rightly, was the remuneration package for Company Management voted against last year leading to a Spill Resolution, why is it then that there appears to be no change (no announcements to suggest otherwise) in the drawings - it certainly appears IMO that their remuneration is not linked to performance!! So much for listening to your members and doing all things in the best interests of the members - to which there are more than 3!!!
DYOR but isn't it a requirement that Related Party Transactions of this type be approved by the members? This is starting to look very similar to the events last year - why is it that in prior years (ie before last year) such conversions were voted on by members but not any more (DYOR Annual Reports and AGM notices!!) - I do not recall seeing a change to constitution for members to vote on nor has there been, to my recollection, a change to the legislation.
Interestingly the Company continues to maintain $1,000 in the "bank" and requires Director's loans, which do not appear to have been announced, to the tune of $200,000 every year (or there about) to stay afloat - is this not a case of the Directors increasing their holdings and diluting "financial" subscribers - does this smell like the Company is unable to meet its debts as and when they become due - what happened to the last CR that was supposed to be used for exploration at the other tenements - no reports as to progress or result, my guess is nothing ever happened, same old same old.
DYOR but what are the rules and requirements for underwriters? What happened to their friends at Patto's - or have they too had enough of the "stories" and dilution.
Just putting out there some thoughts for you folk to ponder - do your homework/research, think hard, and be prepared to ask the Company Management the hard questions - no matter how small your shareholding, you do have rights - use your voice - there is an AGM on the horizon!!!
Still looking for the Right Deal!!
NIU Price at posting:
0.2¢ Sentiment: None Disclosure: Not Held
