I have been watching this stock for the past six months. As a low volume traded stock, it became obvious to me that the stock price was being manipulated lower, especially at the close of trade on many days. I suspected it was opportunist and the only explaination I could come up with was that it was being set up as a takeover target. Because of the low volume daily trading, very little shorting was actually required to keep the share price contained or falling.
Based on my belief I have invested quite heavily in Vitaco and must say how horrified I have been with this board of directors and their lack of attempts to support the share price, as is their responsibility.
To give a positive operational update on the 16/06/16, reaffirming guidance and positivity towards the coming years only to contradict themselves with the statement that they fully support the takeover offer at $2.25 with dubious guidance about FY17 to me, borders on criminal.
This board will need to fully disclose "what's in it for them", before recommending this offer to Shareholders.
It is the responsibility of the Board of Directors to act in the interest of Shareholders at all times and it spells out, quite clearly, on the ASIC website. It states that the Director must-
- use any information you get through your position properly and in the best interests of the company. Using that information to gain, directly or indirectly, an advantage for yourself or for any other person, or to harm the company may be a crime or may expose you to other claims. This information need not be confidential; if you use it the wrong way and dishonestly, it may still be a crime.
- Every year, the courts send dishonest and reckless company officers to prison, and impose heavy fines and award damages.
- As the company watchdog, we investigate corporate crime. You can report dishonest company directors to us. We may take a number of steps against directors who fail in their duties.
I personally will be voting No to this offer. Of course the company will have to spend more money to expand its business overseas in the years ahead. This is not a bad thing. It's business.
If the CEO, or the board of this company are afraid of doing some real work to grow the business and would rather take the first low ball offer to this manipulated stock, then maybe they should resign.
Sadly ASIC appear to be a lame duck to most of us but perhaps a reminder to the board of their fiduciary obligations as directors may just plant the seed of doubt.
Anyway just my 2 cents worth.
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