I am not a lawyer but having looked through the pds and 2014 annual report it seems clear to me that the company has bought its own shares in violation of its obligations. This could a stunning blunder by management. I wonder if they are checking their insurance coverage!
If there is a breach then SPS holders get preference shares in PaperlinX with the right to request redemption at any time. If I held any ordinary shares I would be calling the company to get them to strike a deal in case a judge orders conversion of 1 preference share into over 4,000 ordinary shares. 10 billion new shares issued will really hurt.
SRS Price at posting:
2.4¢ Sentiment: Hold Disclosure: Held
