There will be a resolution put to shareholders to delist the company from the ASX, for reasons as yet unknown. However, the company is entering into a quasi financing arrangement with 2 large shareholders who are providing $5 mil each over 12 months, with certain conditions attached, to keep the company afloat (requiring a vote by shareholders). The company has said that if the financing arrangement is voted down, then it will be bankrupted for several reasons.
The effect of the financing arrangement is that the 2 financiers will cause such dilution that they will have complete control of the company's shares, which will be in breach of Israel's corporate law, and will grow with each tranche of funding. The solution is to delist and turn the company into a private entity. IMO.
Shareholders are being asked to eat a s#$t sandwich.
SPT Price at posting:
7.6¢ Sentiment: None Disclosure: Not Held
