ASIC v ISX Hearing, page-3483

Hi Raccat,

You’re probably correct here in real World context of what will play out. Misleading and deceptive conduct is pretty serious as you are essentially branded a liar ( reputational damage) but the fact that ASIC failed to prove that Karantzis knew about the performance milestones and deliberately structured revenue to get across the line on the performance shares is the biggie. Look, I’ve tempered my view on all this since processing the judgment further but I have little doubt in my mind Karantzis was smudging things so not to draw attention to the revenues but he’s been cleared so that’s history. It will be interesting to see what fine they slap on him and the company. SP1 has no $ so that’s a hollow outcome, SP1 will be wound up. Whether ASIC can enforce the fine on Karantzis in Cyprus is yet to be seen. He may choose to pay it ( or ISX Financial pays it as a loan) as penance so he can say he took it on the chin.

In relation to the Piper Alderman potential litigation, I’m not sure what’s to commercially chase there because SP1 will be wound up. And now that ASIC cleared the smell around the performance shares there wouldn’t be much meat on the bones to legally go after. Only other option is to go after the Directors I would’ve thought?

Moving forward I’m not sure if Karantzis can remain as the figure head CEO? They may have to recruit more strength to the board or management to sooth the past. Maybe paying the ASIC fine helps ? Time will tell.

Whilst this is a slur on Karantzis’s reputation and that does rub off onto ISXFEU I don’t think it will stop the company from listing if indeed they are genuinely getting ready to do so. He needs to deal with the Lakspur/ Edmonds litigation prior to that event and put an end to the legal shite.

As a shareholder I don’t want anymore problems getting in the way of shareholder liquidity. I want choice to access my $.