fas dumps 13.5m gwr shares, page-2

FAS should have lodged a Substantial Shareholder Notice change notice but yet again have failed to advise ASX. Breach!

After the ASX grilled them in November about their Annual Report and they admitted to failing to inform the market about their last GWR disposal you would think they would be a little bit more careful about disclosure. Fat chance.

But no and they further muddy the waters. It reads like they disposed of the 13.5m GWR shares at a market value of 10 cents a share to pay down debt. However these shares were held as security and the debt was significantly in excess of the amount "realised" here of $1.35m. Yet the cash flow statement shows no sale proceeds nor any debt paydown.

Seems to me the secured creditor took possession of the shares as they were in default and if so what about the shortfall? Worse the "market value" of GWR shares at the time of the transaction was closer to 18-20 cents (albeit there would be a discount for such a large parcel) so to say the parcel was valued at $1.35m is an interesting wording. Mind you at current market value the parcel is valued at $3.35m so someone has a nice earn on the horizon. Thanks A Team!

Disclosure of the loans at page 3 of the Appendix 5B is interesting. The very generous lender of the $1m loan (at 30% per month) secured by a charge over the company seems to have stopped charging interest. The principal on the loan is $1.3m which is unchanged from the balance as reported by the auditors at 12 October 2012 (noting at that time it was in default)and according to the cashflow report, no interest has been paid by the Company in the quarter, so either no interest is accruing or this amount is erroneous.

The biggest worry for the true believers is that SHIP seems to have moved down the priority list with the emphasis on Uranium and Gold. Picture of remediation at SHIP? What gives? And of course another paragraph of unintelligible waffle on the funding approval process.

Of course to cheer everyone up further the $1m convertible note falls due today, but don't expect to hear anything from this mob on the fate of this which clearly cannot be paid out.

The upcoming half year audit report looks like being another case study for auditing students.

ASX should really have a look at FAS and their disclosures again.