Talk of people taking 'class action' or for that matter any action, you need to be very careful.
Firstly shareholders need to ask themselves if they are just throwing good money after bad.
Secondly you would need to get some very good legal advice to see if there was anything that could be sued over (not going to be cheap in itself). I'm sure people will get lots of solicitor speak telling them different possibilities, but any shareholders taking this path need to be very careful with the advice you get.
My experience with solicitors/barristers for 'legal advice' is that you get to hear whatever you want, with a lot of caveats, so that you can spend a lot of money with them to run into a roadblock down the track.
WFE is still a public company, just unlisted, so it has not folded nor been placed into any type of VA (to my knowledge), so an immediate argument would be that shareholders have not lost their money as their shares exist in the company.
"The funds raised from both Placements will be used to fund due diligence on potential new cobalt acquisitions in the Democratic Republic of Congo and up-front payments on any new acquisitions made. The funds will also be used for general working capital requirements including corporate and administration costs and exploration costs incurred across the Company’s other projects.
The Company is seeking to acquire exploration and mining licenses in the Democratic Republic of Congo that are considered highly prospective for cobalt and with the capability to be advanced rapidly towards production."
My point being, did they spend the cash on what they officially said they would spend the cash on?? Did shareholders approve this placement and therefore strategy??
Look at the wording " to fund due diligence on potential new cobalt acquisitions in the Democratic Republic of Congo and up-front payments on any new acquisitions made."
If I had made an investment here, I wouldn't be looking at any legal action, unless I had some really good advice about something I'd missed and I don't think I'd waste any cash trying to get the 'right' advice.
If I was a shareholder I'd be more inclined to be questioning the auditors on where the cash in the DRC went and why it was unrecoverable etc, plus be demanding the 2019 AGM from the current BOD.
WFE Price at posting:
2.4¢ Sentiment: Sell Disclosure: Not Held
