With the current rights issue closing late next week, shareholders at least deserve further clarification on the current financial and legal position of PLV to the extent that there will be no reoccurrence of events of the past.
In particular, the current prospectus notes the following:
"The Company lodged the Last Prospectus to raise $17,369,488 (before costs) with ASIC on 22 April 2014. That offer closed on 14 May 2014.
The Company has previously advised Shareholders (see the Last Prospectus) that it has not met its disclosure obligations under the Listing Rules and as such, the Company faces the risk of regulatory action.
As noted in Section 2.3, after the close of the offer under the Last Prospectus, the Board became aware that the extent of the Company’s creditors was significantly greater than anticipated both at the time of lodgement of the Last Prospectus and at the time securities were issued under the Last Prospectus. The Company is subject to compliance with the Corporations Act and the Listing Rules and its compliance within the regulatory framework is monitored by and subject to enforcement action by both ASIC and ASX.
Further, there is a risk that the Company’s directors, former directors and other officers may not be covered under the Company’s insurance policy in respect of circumstances where the Company has not met its disclosure obligations, including due to admissions that have been made.
As detailed in this Prospectus, the Company has entered into a number of different agreements, and believes that it has complied with the Listing Rules in entering into these agreements. However, the interpretation of the Listing Rules can be subjective, and there is a risk that ASX could interpret the Listing Rules differently to the Company. If ASX makes such a determination, there are a number of different actions it may take, such as requiring the Company to unwind a particular transaction, or suspending the Shares from quotation or require the Company to seek Shareholder support.
Any action of the sought described above may have a negative impact on the Company, the Offer and the value of the Shares."
PLV Price at posting:
3.4¢ Sentiment: None Disclosure: Not Held
