beware of greeks bearing gifts

Good morning all. I thought it was timely to update the forum of where I am personally at with the proposed consolidation.

Let me start by saying that I have spoken with all Directors bar Kemp, and most of them on a number of occasions. I have detailed to them individually and in no uncertain terms what my personal feelings are about the plan. Furthermore, I have sought professional opinion and advice and outlined to our Chairman a reminder of his fiduciary duties as non executive director and Chairman of OUR board. I have also discussed this with our secretary Mr Oliver Carton.

As you all know now, I have personally written to most of the large shareholders of INT, and infact called a number of them over the phone as well. I must say, that exercise was a warm reminder of the type of people that make up our fellow business owners.

I found a number of the large holders to be really nice, simple, honest people....who were completely open to our conversation when contacted by a complete stranger. Those conversations and the chance to speak with them, has made me even more determined to ensure that these 2 motions are NOT passed, to ensure that a bunch of really decent human beings are not robbed of the substantial opportunity that our business is now capable of sharing in.

To update you on how I think the vote will go, I think it is going to be very very close. I have contacted as many people as I could have, I was approached by Fairfax newspapers who interviewed me and asked me detailed questions regarding the situation, and I have written to a number of large stakeholders. Whilst I have done all that I think I can, the numbers of a certain few unfortunately make up a substantial part of the voting rights....so it will be tight, be under no allusion. What we dont really know, is the depth of holdings amongst forum holders, but that is becoming clearer as individuals are contacting daviob with their numbers and support...so please do that if you haven't already done so.

Finally, let me just state this one point. When considering the motivation of this consolidation and the suspected reasons you have for why a large holder might want to see this motion get up, consider why would someone who has already invested a few million dollars into this business at considerably higher prices....wish to put himself in a position where he can take a further substantial portion of our business?

Enjoy your weekend.

Kiril.

I hold


I have posted a copy of the letter they each received below for your information.

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Dear fellow shareholder of Intermoco,
My name is Kiril Ruvinsky and I am one of the substantial shareholders of Intermoco. Over the last 7 years, I have made a very large investment into our company by way of not just my capital, but much of my time and effort in introducing a number of very large developers and land owners as potential clients to our business.
I currently own 56,821,812 shares, so you can imagine I share your disappointment regarding the financial outcome we are all currently experiencing.
The reason I am writing to you, is with regard to the forthcoming General Meeting and shareholder vote. Our board has proposed and are recommending a Share consolidation to take place, whereby each 20 shares you own, will be consolidated into 1 share.
The enormous risk we as shareholders face by agreeing to this consolidation, is that the stock price is raised back to a level of between 2 or 4 cents, which then gives it room to continue to fall, effectively going to levels below where we are currently sitting. This will effectively further erode your capital even more.
It also leaves the door wide open for any unfriendly parties, or large shareholders to manipulate the shareprice, causing it to fall further and then pick up a large percentage of our company for very little dollars at an all time low price. This practice is known as a ?mop up? of small holders.
Our business today only has a market capitalisation of around $5m?that means you could buy the entire business for only $5m. Did you know that the company has carried forward losses of over $70m? The value of those losses only is worth more than what you could buy the entire business for, and you get the rest of the business thrown in for free, Just crazy!!!
To give you some background, I have supported Intermoco in all of the recent capital raising's with my own money, I have worked closely with our directors in introducing both potential clients and investors, and I am overwhelmingly convinced that we have a fantastic business in the making here. Sadly the market has not yet identified the potential of our business, and that?s why we have found our Share price at these all time low levels. The one upside of sitting at a fraction of a cent, is that there is not a whole lot further the price can fall. However at 2 or 4 cents, it opens the door right up to much much greater depths that the share price can fall?.which is not in any of our interests.
Our directors have sent you correspondence explaining their rationale for recommending this consolidation, stating that they are ?confident of attracting substantial, longer term investment in Intermoco once the shares are consolidated?. I have personally spoken with 4 of our directors in the last week, and they have explained to me that they feel only once we are consolidated, will we be able to attract serious investors to buy into our company.
Well to that, I reminded them that it was my personal introduction that brought our first institutional shareholder Macquarie Bank Funds Management to our register. I personally introduced them, and they invested almost $300,000 of their capital because they thought the business model was worthy of investment. The fact that we had almost 2 billion shares on issue at the time, did NOT stop their investment. They, like all other professional investors look for a return, based on sustainable earnings.
There are countless examples of very successful Australian small listed businesses that became very large businesses with billions of shares on issue, and those shares never stopped large investors from investing. To say that we are ?off the radar screen? of potential investors due to the amount of shares on issue is plain rubbish. We are off the radar because our directors have failed to show the market that here is a business that will deliver superior sustained earnings growth, year on year.
Please do not see this as a show of no confidence in our management team, as that is far from the truth. I back both Andrew Meehan and Ian Kiddle to deliver the business growth we are all looking for from this business. However in this instance, I believe they have been misled about the risks of attempting a consolidation whilst the share price is still clearly in a downward trend, and the market is still unsure about our business model, profitability or even our chances of surviving.
I urge you to stand up, and cast your vote as AGAINST for BOTH motions, as it is crucial that as many shareholders as possible vote this down.
Should you feel the need to discuss this further, please feel free to call me directly on XXX XXX XXX.
We must stand together to help save our investment.
Thanking you kindly.

Kiril Ruvinsky.