This is the part that intrigues me - CMY invests $599,511 into Stirling. Stirling then issue capital to CMY as part payment of the loan.... Why? And then, they impair the rest of loan value to nil. Again why? and how does this benefit shareholders?
"Stirling Products Limited
During the year the Company advanced $599,511 to Stirling Products Limited, a company of which Mr Peter Dykes and Mr Peter Torney are Directors. In June 2016, Stirling Products Limited issued 7.6 million shares to Capital as part repayment of the loan. The loan balance at the date of this report is $204,431, which the Company has decided impair until such time that Stirling has raised sufficient funds and repaid the balance owing. The loan currently attracts a 16% per annum interest rate."
CMY Price at posting:
0.5¢ Sentiment: None Disclosure: Held
