A very good analysis and constructive thinking, Inchiquin. Thank you for your effort.
One thing that has been on my mind is that, IMO, the BOD and Management are concerned that they become unwittingly trapped in an insolvent trading allegation/prosecution down the track. Even accepting the approx $10 million in available funds, it may be that they consider the risk of higher fines/penalties through Australian and/or Chinese litigation could quickly turn the company asset negative at any point in time. Being well credentialed lawyers and accountants, I can see why they might consider the potential reputational risk from this too high.
The Lachlan/BOD change of business strategy may well be a good idea long term, but I wonder if it may prove to have been premature, and best exercised in a company with a more substantial asset base and established recurrent revenue stream. I agree that substantial staff and payroll pruning is new necessary, with the primary objective to preserve cash at all costs. But just how low can you reduce staffing in a company that can only derive its income through providing close technical support and application testing / advice to its customers, as prerequisites to the actual product sales?
Like you, I don't find this talk of class action at all helpful. And in any case, I expect, based on the two class actions I have been involved in over the years, shareholders will not receive any worthwhile payout, if indeed any. It may well be driven by vitriol and a desire for revenge by a few disgruntled people (not necessarily shareholders), but in my opinion, this is not the time for such distractions and negative energy. The only winners out of that approach will be those few ambulance-chasing lawyers who are quick to raise their parasitic heads in these situations.
I have held a substantial amount of Phoslock shares since the early days of listing. The product has never failed. Chinese/Australian greed and dishonesty on the part of a few, combined with the Covid-related destruction of various government budgets may well end up destroying this company. But I would hate to see the Product IP, credentials, good-will etc sold off to some unrelated party ( esp Se Pro) for a fire-sale bargain at our expense, through unnecessary pressure placed on management/BOD by thoughtless or worse self-serving individuals.
And, as I have said before, lets not forget that at least one Chinese government agency is not honouring its payment obligations of around $6 million. We could probably survive if we had that. It seems to me that management just can't shake off these past demons and parasites, and that some shareholders could be more supportive.
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