I am not a holder. I have watched this company for several years...

I am not a holder. I have watched this company for several years and there has not been an attractive entry point based on the executive management's continual failures. Strategic and tactical failures have only been matched by the failure of corporate governance.

The upcoming Extraordinary General Meeting (EGM) on May 28th 2020 to vote on the separation payments to BPAM must be considered carefully by all shareholders. Current Shareholders will be asked to pay BPAM a $5.6m termination fee. $1.3m in with YOUR cash and another $4.5m of newly issued shares (21,125,000 shares). Some 2.5% of shares in your company will be given away under this payment.

If you think this arrangement is fair and equitable then don't vote in the EGM on May 28th.


Who gains from this transaction? Beston Pacific Investment House. Who is Beston Pacific? Roger Sexton and Stephen Gerlach, who are essentially a PRIVATE EQUITY investment house. Private equity buys assets as cheap as possible, strips and sells assets for a profit or wraps up assets and lists them on stock exchanges. In the mean time, their "consultancy fees" keep getting paid from the assets or businesses they buy privately and continue when they are listed with built in punitive termination payments which exist for good reason. Private equity gets to receive their 'fees' for longer.

Case in point. On Dec 11 2020 your company (BFC) announced to the market that they determined in the first half of 2020 that they would leave "Investment Management Agreement" in place due to 'the risk of increased cost to the business at that time'. How convenient for the two directors of Beston Pacific Investment House, Roger Sexton and Stephen Gerlach.

NOTE to all shareholders. "The terms of the termination payment are fixed and will not change" See ASX release Dec 11 2020.

If the share payments are not agreed to at the EGM on May 28th this could well mean that the company (BFC) will have to make the payment in cash rather than shares. The company must disclose the terms of the agreement so shareholders can see how this private equity firm is fleecing BFC shareholders- cash or share or both?

Have the independent directors of BFC acted in the best interest of shareholders since 2015? Did they act in all shareholders best interests when they agreed to this IMA with Beston Pacific Investment house with such a punitive separation clause? Should there be a vote of no confidence in any board members or indeed the chairman? These are questions for current shareholders.