GJ, while it is not regular, but the related party transactions did keep various parties in the game rather than extinction.
Sam, not sure if ASIC or ASX could do much about it.
On paper, AGS Capital did nothing wrong. The purchase agreement was structured to ensure that once the fee was received, it would be almost impossible to get any advances due to the conditions of 9.9% limit and 0.009 min. Of course the real intention may be obvious to most, it would be hard to prove that they won't honour the funding since the funding condition cannot be satisfied. Now that EDM actually terminate the agreement, which is exactly what AGS expected since they did put in the termination terms in the agreement, no one could ever prove that in fact they will not fulfill the advance funding.
The whole saga is AGS Capital gained $500k by destroying $8million of Market Cap of EDM and further reduce the subsequent placement valuation by 50%. All this for $500k! I would say AGS Capital is a cancer and the regulator has to cut it out.
Let's get over that leech and get back to business of exploration and mining.
DYOR
EDM Price at posting:
0.4¢ Sentiment: Buy Disclosure: Held
