1. Companies are allowed to buy shares in other companies, it happens all the time.
2. Don't know the details of this so can't comment.
3. Companies are allowed to loan money to other companies - again it is a common thing.
4. As per 1 above
5. There was a signed agreement and there was a factory. Both were badly done but they did exist therefore not fraudulent.
6. The comments may have been 'dodgy' but not fraudulent in the legal sense.
I'm not saying they haven't ripped off and misled investors - they have. I'm saying that, legally, there were proppants, the proppants were tested, they had a patent, they built two factories and they tried to sell the product. Therefore there isn't fraud. There has been massive incompetence and 'dodgy' (as you say) dealings along the way.
But ask yourself, seriously, did you really think that two guys with no engineering, mining or business qualifications and limited skills or experience in those areas were ever going to build a billion dollar technology company?
Yes the Directors acted irresponsibly and inappropriately and made a lot of money for themselves and their friends but why did people keep buying shares? People wanted to believe they were going to get massively rich off this company. Like they say 'caveat emptor'.
LWP Price at posting:
0.1¢ Sentiment: Sell Disclosure: Not Held
