AWC 0.00% $1.45 alumina limited

blatant insider trading today, page-2

  1. 6,716 Posts.

    Text of complaint to ASX today:


    Complaint about insider trading and dodgy corporate announcements - AWC Alumina Ltd

    I draw to your attention that Alumina has this evening ( Monday 25th ) announced a major capital raising of a nature which will have a material affect on the share price. The record date for this capital raising is 29 August. The "ex" date for this action is therefore 25 August, shares purchased on 25 August are effectively ex-entitlement. Ex-entitlement shares will be worth less than pre-entitlement shares. It is unsatisfactory that this company has been allowed to trade on Monday August 25 with information about this relevant "ex" date known only to insiders. Insiders would be able to sell their shares at a high price on Monday, knowing that since they owned the shares on the preceding Friday, they will still be entitled to take up the "cheap" shares in the rights issue even though they sold their shares on the Monday. The insiders will also be able to buy shares sold on Monday 25th back next week at cheap ex-entitlement prices.

    It is unacceptable that companies are allowed to make announcements in this way which gives their cronies and advisers a period to insider-trade. This stock should have been placed in trading halt prior to the commencement of trade on Monday 25th.

    I further draw to your attention, the fact that this insider trading opportunity became known to a somewhat larger class of insiders around 2 oclock PM on Monday August 25th. The effect on the market trading volume and price can be readily seen. The circumstances of the parties dumping shares at this time should be investigated.

    A formal complaint is being made to ASIC about the conduct of ASX in relation to this. It is ABSURD that you are dealing with the company about the DRP shares of one director when millions of dollars worth of insider trading is being done.
 
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Currently unlisted public company.

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