Ann: Pause in Trading, page-244

I agree that there is absolutely nothing wrong with Bonitas doing what they have done if they are right.

However, we have seen the managing director of RFF come out publicly and state that the financial statements of the company are 100% correct. As a shareholder in RFF, I take him at his word (for now).

Accordingly, if it turns out that Bonitas are wrong or are substantially wrong, then I think it is outrageous to have gone to the extreme of making claims of fraud and alleging shares in RFF are valueless.

The law imposes heavy obligations on directors of companies to provide frank and candid disclosure in respect of all matters that may be material to their company's share price. The same obligation should be imposed on professional shorters. If they make public assertions of fact that are material to a target company's share price, they should be under an obligation not to mislead, deceive, exaggerate, inflame or put up false hypotheses.

Unfortunately companies cannot sue for defamation, but they, and their shareholders, can sue for misleading and deceptive conduct if losses are suffered.

Somebody here should have a price to pay. Whether it be the current board of RFF, its auditors, or Bonitas and its directors, only time will tell.