re: Ann: Request from members to hold a gener... DargieI have an...

re: Ann: Request from members to hold a gener... Dargie

I have an unfair advantage over you as I am a tax accountant with 20+ years experience

there are 2 tests in being able to utilise tax loses . you only need to pass one.

the first is continuity of ownership. This is the one you are trying to defend if the capital is returned first. What you are saying is incorrect.

Continuity of ownership has long been lost. The majority of shareholders that existed when the losses were incurred would still have to be the majority now. Neither you or I or almost anyone else with a reasonable stake were owners when the losses were incurred. ( thank goodness.)And even if we all were pre losses , with the amount of capital they are supposed to be raising , the same ownership test would still be lost.

The test that probably will be passed is the same business test. That is Max will need to continue in much the same business after recap as it was before . It appears from what has been said in the announcement that would be passed.

I have spoken the Alceon . They advised me that they will be attempting to utilise the losses but will not be attributing any value to them in the dilution to existing shareholders. They also said they would not be placing any value for the structure etc . I suggest you give them a call your self. If you go to there website there is a link to the Max recap with Alceon contact details.

Now my reading of this is all they are doing is giving us the great pleasure of investing with them , taking our loses and structure for free and at the same time delaying our capital return. I do not see that as a fair deal.

I reiterate my view in that returning the capital first would be more appropriate . We will not be held to ransom while this is sorted out. It makes we wonder how confident they actually are in raising the capital.

I can also confirm to you, friendly, if they exit in the recent buying are not doing all the buying