ASIC Complaint lodged

I lodged a formal complaint to ASIC on FLC a little while back. I see that others have also lodged complaints to both ASIC and the ASX today.

I will be lodging another complaint on the trading activity of the last 2 days as well.

I know that people are saying that ASIC is toothless but I believe that if enough shareholders put in complaints that there is currently a LOT of political pressure on ASIC to get tough on misconduct as a result of the fallout from the banking royal commission such that they may very well investigate FLC.

I have asked ASIC to investigate not only the trading activity on FLC over the last year but also I have asked them to investigate whether there was any misrepresentation in the statements made to the market in the lead up to the merger last year.

I would encourage everyone to closely look at the statements made regarding China deals as well the guidance statements made regarding the RWL revenue guidance last year where very strong statements were made to the effect that 71 % of forecast revenue was secured as at 30 April 2017 (see notice of EGM) and that 83% of a forecast $US90 million was already secured at the time of the EGM (ASX announcement from 12 July 2017).

It seems that as soon as management achieved the yes vote to the merger these types of statements ceased almost immediately. and everyone know what the actual revenue results were (it was not a small miss in my opinion).

I think some very serious questions need to be asked of management and hopefully ASIC will be able to put these questions to them.

I have also asked ASIC to investigate whether the original EMC vendors were actually entitled to the milestone shares as I have been unable to substantiate personally whether the milestones conditions were actually met especially the second milestone...it seems that they achieved this milestone at the 11th hour just before the entitlement was due to expire based on the announcements made to the market. It would be good to get the confirmation from ASIC that Eytan and other vendors were fully entitled to a large chunk of the shares they have been dumping.

Hopefully ASIC will see fit to ask some questions of the Company based on my complaints because it is all well and good to say management are now simply getting on with things but this is very cold comfort to those that purchased shares around the time of the merger and to see the share price decline that commenced almost immediately after the merger was finalised.

A total disgrace in my opinion!!!!!