IMO there would have been an extended period where this could've been mediated before it ever got to litigation and it wasn't. The action was taken over Goody's 23.7 million performance rights not being converted to shares due to the non delivery of milestones relating to the agreement which were as a result of ZEO not doing the requisite work.
When you have over 90 million shares at the point of litigation you know you are going destroy your own value and he still proceeded with legal action. As I said it was over an additional 23.7 million when he had over 90m so that's a serious risk already to his own position and in the end the claim is for just over $1.4m in cash. When you have 90 million shares each 1 cent move in the price is equivalent to $900,000 so you have to ask why he would take that sort of risk in the first place when the dollar amount of the claim is less than a 1.5 cent move in the share price?
IMO it tells me he's happy to take whatever money he can get out of it and doesn't have a lot of faith in the value of his equity at all, you just wouldn't have gone this far anyway.
The problem is that with a little over $2.4m in the bank and spending roughly $700k per quarter they need to raise capital now. Hypothetically let's say If they had to pay the judgement in full the company is out of money and in the absence of raising money at that point could be technically insolvent. The BOD is then on the hook for that and IMO would be silly to ever assume that sort of risk.
IMO on the balance of the probabilities one would think the likelihood of another CR are high and required as a risk mitigation factor alone and who wants to put money in on the basis of potentially settling a legal dispute particularly when the counter party is a substantial holder with over 90 million shares who if he doesn't get the result he wants may turn feral and dump his position?
IMO Its a very tricky position to be in and poses some challenging issues for the BOD,
WW
IMO there would have been an extended period where this could've...
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Last
3.5¢ |
Change
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Mkt cap ! $61.37M | |||
| Open | High | Low | Value | Volume |
| 3.5¢ | 3.5¢ | 3.3¢ | $21.56K | 646.3K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 671026 | 3.3¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 3.7¢ | 854039 | 2 |
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| Last trade - 13.20pm 15/05/2024 (20 minute delay) ? |
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Last
3.3¢ |
Change
0.000 ( 5.71 %) |
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| Open | High | Low | Volume | ||
| 3.5¢ | 3.5¢ | 3.3¢ | 57121 | ||
| Last updated 14.41pm 15/05/2024 ? | |||||
| ZEO (ASX) Chart |