Embattled Brisbane energy player LWP Technologies might be on its last legs, with its shares suspended and cash dwindling
Anthony Marx, The Courier-Mail
DESPERATE DAYS
IT sure looks like embattled LWP Technologies might be on its last legs.
The loss-making Brisbane energy sector minnow has secured a voluntary suspension of its shares on the ASX as it conducts an internal review expected to take one or two months.
The probe, which will pore over dwindling cash reserves and ongoing expenses, was prompted by a body blow from the ATO this month.
The tax man has knocked back three separate R&D rebate claims totalling $1.68 million for the 2014 and 2015 financial years.
The ATO has proposed slashing the rebates to just $129,126 and even then there may be shortfall penalties and interest costs.
The two sides are locked in talks and it’s not clear yet whether the company will lodge an appeal.
LWP, which has failed to commercialise its fracking technology since listing in 2006, revealed this month that it has just $480,000 in cash and plans to liquidate a share portfolio valued at $560,000.
That followed a $7.6 million loss in the first half, prompting auditors to warn once again that the company is in danger of collapse. That big river of red ink came after $6 million losses in each of the 2016 and 2015 financial years.
Flying home from the US yesterday, new chairman Dan Lanskey said he believed the company could survive. “You can always raise further capital,’’ he told City Beat.
Lanskey, a former Queensland cop active in the US oil and gas sector, took over last month after long-serving chairman Siegfried Konig resigned.
Konig, who was on a $430,000 salary package, said at the time that he would stay on as an adviser.
But Lanskey said all expenses are under the microscope right now, including that nice little earner for Konig.
LWP Price at posting:
0.1¢ Sentiment: None Disclosure: Not Held
