At a time like this some buying up by the directors would show some faith in CGB to holders.
Volcan loan for ($79,528) has been impaired (another one to add to the $1,200,000) why? Impairment recognised as at 31 December 2019 no due date for repayment ($79,258). No due date for repayment - why not?
Is Volcan unable or unwilling, to repay its debts to CGB shareholders? (p.26 HY Report)
The money owed by AGMPL to CGB has increased from $39,654 (2018) to $56,563 (2019) Why?
And this is the note at the bottom of that page.
"The loan to Volcan Australia Corporation Pty Ltd was not a cash advance from the company to Volcan, but was the amount that was to be paid in consideration for the purchase by Volcan Australia Corporation Pty Ltd (VAC) of ML1492 from the Company pursuant to the transactions completed on 14 December 2010 as approved at the time by shareholders at an EGM. Volcan was to have invested in ML1492, and from the profits of the development of that asset was to have paid CGB $1.2M. Volcan subsequently invested in the asset’s development, but due to the prevailing market conditions, Volcan was not able to make a profit from that asset at that time. As a result, Volcan was unable to meet the acquisition cost of $1.2M at the due date. The amount due was unsecured, due for payment in cash on 14 December 2012, and there was no interest payable on the amount due. The Directors have agreed that it is in CGB’s interest to allow VAC further time to seek to further develop that asset in more favourable market conditions to enable Volcan to make the necessary amounts from the asset to make the payment. As the timing of this payment is at present uncertain, it is considered prudent for this amount to be impaired in the financial statements until the payment is able to be made."
Given the above, Then why not simply give ML1492 back to its rightful owners - CGB shareholders? The present situation seems to be easily resolved in the favour of CGB holders.
CGB Price at posting:
1.0¢ Sentiment: None Disclosure: Held
