MEDLAB CLINICAL LIMITED (ASX:MDC) - Ann: Shareholder Update - Restructuring Transaction, 70848013, page-9 - HotCopper | ASX Share Prices, Stock Market & Share Trading Forum

Originally posted by Koftan: ↑

This Looks seriously wrong. Shareholders need to vote NO, and one big invested institution should look at a class action against the Director liability insurance.

The facts as I see them are as follows;
CEO raises $$$ from shareholders and tells us the company is worth $$$$.
There is a massive conflict where a Director of Medlab appoints the company he is a partner in (Hall Chadwick) to sell Medlab.
CEO and Previous Director under Hall Chadwick drew $$ in fees and consulting over the last eight months.
CEO pays himself a redundancy and a golden handshake with shareholders' money.
CEO and Previous Director under Hall Chadwick claim after taking $$$ and bleeding the company dry over eight months. They state they can't sell it or any of the assets and then gift the entire company to the CEO for a 20% royalty payment for four years with no minimum payment and $0 upfront.

The questions the Shareholders need to ask;
How much $ did we pay the CEO Sean Hall and any related party over the last eight months? I'm talking actual money we paid, no fancy accounting principles that they don't declare as a payment as they accrued for the payment in previous years.
Who were those related parties?
How much did we pay the previous Director, Drew Townsend, over those last eight months? Same question as the CEO. I'm talking about the actual money we paid.
How much money did we pay the firm Hall Chadwick with Director Drew Townsend as a partner over the eight months?
Since Hall Chadwick could not sell, is there a refund to Shareholders from Hall Chadwick, or did the previous Director and his CEO mate write the contract to Hall Chadwick that they got paid no matter what and it wasn't performance-based?
The company has $2.7M in cash two months before halting with possible millions in R&D tax credits payable. Suppose we took that cash, those credits and the $8M in assets in the books. Given MDC has a Market cap of Approx $15M, wouldn't we get 50c in the dollar back?
How much $ per share do Medlab Shareholders get back from the sale of the assets to date, and when will we expect that payment?
How can the CEO raise money and tell us the company is worth $$$ now claim it is worth $0 and give it to him for free, and yet it's sitting on over $60M of tax losses that he can use to offset any future returns he makes? That is at least worth 10c in the dollar for the $60M of ATO reported tax losses being carried forward!
Medlab press release used words such as "no formal bids being presented." I would like to see a list of what "informal bids" we received and what Hall Chadwick classifies as not "formal bids."
Given Medlab was at $60M in tax losses in 2022. What is the final $ loss, and was any company willing to purchase the ASX listing with those tax losses to offset their earnings as an "informal bid"?
Given that Pharmacare is paying a royalty payment to Medlab for using Medlab vitamins and Nanocelle in Australia, over 100's of thousands of dollars. It isn't easy to believe that Pharmacare did not offer to purchase. Did they put in an "informal bid"?
Since the CEO is now getting the company for $0, he is technically not redundant. Will he return to shareholders his $$ golden handshake and redundancy payment?

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good questions and great analysis.

unfortunately someone who uses his own family tragedies as a storyline to make up all sorts of reasons why he is genuinely vested into bringing oncology related drugs and technology to the market, yet lure funds only to bank into his and related parties, only one can wonder the ethical standards and authenticity of such individual.

this can make a great case study for students on how low personal integrity some individuals have.