final word from andrew mortimer

I asked Andrew the following questions yesterday:

You have stated that you believe the results from the VTEM survey will be very good, yet you have chosen to dispose of options only a few days before an announcment regarding such news - This does not make sense to me as you have essentially sacrificed profit as the options price will most definately rise off the back of positive news. I'm sure you can understand my concern with such actions.

Furthermore, you also state that you believe it is best for a director to sell options and buy head shares - Are you indicating that you have purchased heads shares in QNI to replace the options that you have disposed of? If so, why was this not shown on the ASX notice?

His response to these questions was:

Thank you for your email.

As I pointed out to you, I didnt just sell GNI options, I also sold Proto options and shares in MHM, SBR, GLM and MUI. I dont know exactly when the VTEM results are coming but I assume it will be at the end of this week or early next week. Unfortunately I need the cash now, not in a weeks time, hence my sales in the securities of six companies.

I am involved in seeding and floating other companies and I am regularly asked for investment. There is never a good time for a director to sell any kind of stock and as Ive said I keep on buying GNI fully paids. I am fully disclosed on my GNI fully paid purchases, however, I remain a net buyer and I have only ever sold stock in GNI once in the 4 years that I have been involved. I am the largest shareholder and most likely the largest contrib. and option holder but I really didnt need 12,000,000 options and didnt know I had that many of them. I have been buying the stock for almost four years now and have always sold other stocks before the companies that I have directorships in.

I wouldnt be surprised if some people being negative are just trying to get cheaper stock. This is not the way to make profits. I have bought GNI from 2.3c-20c and I believe that I will make a profit on all my stock when we do commence drilling on the WA projects. My view is that jumping in and out just makes brokers and the banks more money, but thats just my way of investing.

Please keep in touch Im happy to answer any further queries. If you are relaying any of this information to other parties then please show it to them in full as I prefer transparency for all shareholders.

Best regards

Andrew Mortimer

To conclude this whole ridiculous saga:

It appears that Andrew required funds for investment in another company, so he sold a small portion of his stake in 6 different companies.

If this is all it took for people to panic and wipe 20% off the share price, I'm not surprised the global financial crisis hit so hard.