Thanks for the detailed explanation. Much appreciated

First 239 Last

Share
Profile

Follow
Stoked1

389 Posts.

86

08/07/23

13:30

Post #: 68685997
Share

Originally posted by Pseudo19 ↑

Logistically the current process has involved approximately three times the number of requisitioning holders. This will have involved more work for those involved ensuring holder designations, addresses etc are correct. It also gives the company's legal reps more opportunity to look for minor errors which they can use to reject a notice.
Secondly the requisitioning group was significantly present in the top 20 back in 2017. They had far more clout. Resistant was a futile process when the intent of a large body of shareholders was clearly obvious.
I don't know if the 2017 process was digitally executed but this has caused a delay this time.
I'm guessing another significant reason is the current board is more belligerent, has access to significant cash to fund potential legal fees and may have instructed their legal representative to make the process as difficult as possible (within the law).
I believe the board has two months after receiving a valid requisitioning notice to hold the meeting. They must notify shareholders of the meeting at least 21 days before the meeting is held. I'm sure they are considering this timeline and a timeline for any deal they may be working on. The longer they can delay announcing the details of the meeting (which will include full details of the requisitioning group, new directors, board spill details etc) the more time they have to announce a deal to shareholders. The board may announce a satisfactory deal in a timely manner in which case the action can be withdrawn.
The law is on the side of the requisitioning group (as it is for the directors) and the notices will be successfully served.

The danger is the board has no deal, they sit on the cash, they use the cash to invest in the next "deal of the century", they hang on and start selling LLL shares post escrow. Investors left with nothing. It may sound hypothetical but anything is possible. This is what must be prevented. Morilla has been a disaster. The top 20 from around the time of the first board spill highlights just how much the lithium asset was diluted, particularly by Cowden/Anderson. The comment by the current board at the AGM suggesting they have created $500M of equity for shareholders is an insult to the intelligence of anyone who has been invested since the BGS days. $500M is a fraction of what could have been created.

Expand

Thanks for the detailed explanation. Much appreciated

FFX Price at posting: 20.0¢ Sentiment: Buy Disclosure: Held
2 Upvote

0 Great analysis

Reply