Another typical liquidity announcement by this company, a...

Another typical liquidity announcement by this company, a directors special to let the trapped illiquid shareholders from the previous underwater czpital raise to get out before the upcoming capital raise any day now. Exact same as the Optus announcement, up on one day and then sold off the next week when reality sets in. To go from trading 100,000 shares per day over the previous four months, then trade 100m shares in the first two hours of trade, is extremely suspicious.

with turning over 45% of the companys share register in one day, you'd expect to see a new substantial shareholder be announced in the next two days. Otherwise, its highly suspicious of possible market manipulation by a stakeholder with a vested interest to minimise dilution from the capital raise to be held any day now. You'd be thinking it would be one of their top 10 shareholders, say a fund based in Melbourne, using an algo to buy and sell shares to itself to portray the false image of liquidity. The house broker euroz be only a willing particpant to clip to trading commissions. Anyway, our lawyers will find out after feedback from submitting the Suspicious Activity Report to ASIC and ASX this morning.

the announcement is not good. Merely confirms pentanet has to pay $2.5M in capex every six months to maintain exclusivity over a system with 10,000 paying customers. So pentanet are looking like to be in scenario of having to buy these new nvdia servers every six months, and there wont be enough customers to justify deploying them in the data centre, so these servers are just going to sit in their box collecting dust. The internet business is zero growth with no new customer growth over the last two years. Management have a poor track record of disgruntled internet customers and never delivering on shareholder returns.


So adding another $5.0m to the annual capex bill for the directors to fund of a company that has $5.0m cash at bank, loses $1.5m to $2.5m per quater in operations and capex investments, plus the annual $1.7m 5G Licensed spectrum bill coming up in May, doesnt get more obvious this is a short term pump into retail ahead of the next capital raise. Pump short term share up to minimise the dilution from a $5m capital raise with options. The existing options all expire this june and are wildly underwater so will expire unexercised, giving direcotrs a clean czpital structure to issue a tonne more new options now at a lower strike price.