Thought things may have changed when I heard the Directors were going to offer the small shareholders something, however having read the latest Preliminary Final Report and the Share Purchase Plan, I realise nothing has changed. Looks like desperate measures by desperate men in desperate times.
Finance report shows revenue $424 with expenses of $3046 and a net loss of $2643 leaving cash on hand of only $300. The breakdown shows consultancy fees $1029 – presumably still to Williams’ GPG – and legal fees of $827 – Danny and Jacques? – and operating expenes of $241 – rent for use of FDR’s office? Cash Flow statement shows payments to suppliers and employees to be $2406. Looks like the boys are still looking after themselves very well but unfortunately there is only $300 in the till.
The biggest problem now facing the boys is how to fund all their fees and ongoing lifestyle – a share issue sounds good. Well there is no point going to the parent, VRB is not travelling too well and FDR has already borrowed $200 from PCE, also an issue to related parties would require shareholder(minority) approval – at least they have finally got that right – so that only leaves the poor old uneducated chook shareholders.
Have a heart boys, haven’t the chooks already been plucked enough, not only did the boys cost the company a lot of money in fighting the Reliable offer of $0.65 cash they cost shareholders a lot more by embracing the VRB 1-4 potty paper bid at $C2.60. PCE has since fallen to $0.11 and VRB to $C0.22 – now that’s what I call shareholder wealth creation, but why worry when the boys making the decisions don’t own any shares in the company.
Well good luck to the boys, I wouldn’t be counting on too many cheques in the mail if I were them and at the demonstrated rate of spending cash the company may not be around before the next mail delivery.
PCE Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
