Ann: Wellard Successful in International Arbitration, page-32

0/4.

Seriatim:

1. I think DDMHC has not accurately assessed WLD’s prospects, and has failed similarly for years. But that said, few investors have a 100% strike rate.

2. I simply don’t know whether WLD has insurance that will respond to the class action, and respond sufficiently. Again, WLD hasn't said. It is commonplace for companies doing an IPO to take out prospectus liability insurance. And it is unheard of for a public company not to have D&O. But. Even assuming the existence of such policies, one cannot assume they will respond, and respond sufficiently. How much coverage do they offer? What are their terms, and more importantly, their exclusions? Why has WLD not expressly confirmed it has coverage that is responding, if that is the current state of play? It is commonplace for insurers to reserve their position (ie be non-committal about whether they will respond fully to a claim) but fund relevant costs for the time being. That is what I think has likely occurred here. WLD doesn't break out legal costs in its financials, but on numbered page 61 of its 2021 AR you'll see that for 2021 it incurred "general and administrative costs" of $491k, which compares to $1046k for the pcp. Class actions are not cheap to either run or defend, so I'd think that WLD's "general and administrative costs" would be higher than $491k for a full year if it was currently paying the legals itself.

3. From what I've seen the claim makes sense on its face. As for whether it will be successful - if I had to bet, I'd bet it will settle for a material sum. I don't know anywhere near enough about the case to form a concluded view about where a judgment would land, though.

4. WLD is plainly not insolvent. A company is insolvent if it cannot pay its debts as and when they fall due. WLD is not in that position.