Thought I'd also post this in the stock forum for greater exposure.
Anyone else following Lion? I'm surprised there hasn't been a plethora of damning posts.
For my sins I'm holding a few of these so I've had a couple of chats with Russell Brimage over the last few days. He seems an approachable chap with the company's interests at heart.
If you take a look at the last couple of quarterlies you will see that there has been about $3m in "loans to unrelated entities".
If you have been following the "Mercorelli" saga and given that he has been running this outfit (apparently in a pretty unfettered way) it is not rocket science to realise that the recoverability of these "loans" is of some concern.
The situation has become critical as the outflow of funds in this way has left Lion's kitty bare. Hence current management have thankfully stepped in.
Expect a small fundraising to provide some working capital prior to re-listing.
The good news is that Lion's oil interests are in great shape with another lifting next month. This will put them back on firm ground.
Hopefully the full extent of the problem is $3m or so having gone missing. This is no small matter and will be vigorously pursued.
The important thing is that the company appears completely viable going forward and in fact is probably in better shape trading wise than it's been for a long time.
Imo this is a watershed for Lion that, with a following wind, will allow it's true value to be unlocked. Depending upon what announcements are made upon re-listing I will not be in a hurry to dump my holding.
cosmos
Add to My Watchlist
What is My Watchlist?
