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."
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