More vague and evasive answers to ASX queries from HML's cosec Jody Wright. Once again they seem to be very cautious with their answers; very careful not to give away any new or additional information that hasn't already been published in a previous announcement.
Highlights below for those who don't have the time or inclination to read the whole thing.
ASX Q1: Why did HML further extend the term of the $2,411,000 loan to JBL? HML only had $11,122 at the end of June and was late in paying ASX listing fees. Surely further extending the loan to JBL wouldn't be helping HML's cash flow issues? HML: JBL requested it and that's really all that matters. The money is loaned to JBL at 11.5%, so if JBL ever does repay the loan it will be good income for HML. HML managed to scrape together enough cash to get by. Our ASX listing fees were paid late but they got paid eventually, right?
ASX Q2: What analysis did the board of HML perform to lead it to impair the loan to JBL by $600,000? HML: HML relied solely on information provided by JBL. We didn't do any other research because we believe JBL's word is gospel.
ASX Q3: Why did HML further extend the loan of $449,063 to that was novated to JBFG? Isn't that the same loan that you initially impaired by $250,000 back in 2018? You seem very undecided about the recoverability of this loan. HML: I'm feeling lazy so I'm just going to copy and paste my answer from question 1 here and update the pertinent details.
ASX Q4: What's the issue with regards to the interpretation of the High Water Mark? Your previous announcement suggested that there may be a dispute between HML and JBL with regards to performance fee calculation. You're going to need to elaborate. HML: Yes, apparently this High Watermark thingy is used to calculate JBL's performance fees. I don't want to answer this question so I'm just going to restate the same stuff I've already said in previous announcements and not elaborate at all. I'm also going to try invoking attorney-client privilege to avoid answering this question.
ASX Q5: When do you expect to receive this legal advice? You've been taking your sweet time about it. HML: Soon. We're just having trouble finding a legal firm to advise Stuart McAuliffe from HML in relation to the potential dispute with Stuart McAuliffe from JBL. Every lawyer we've spoken to so far has suggested that we should possibly be seeking a mental health practitioner instead of a lawyer.
ASX Q6: There seems to be some confusion about the ownership of BHD's banknotes that are held by Kings Currency. Isn't HML worried that the same thing is happening with HML's banknotes? HML: Yes, Stuart McAuliffe is in his office having a conversation with himself about it right now. We'll let you know once he's done.
HML Price at posting:
$1.99 Sentiment: None Disclosure: Held
