I spoke to the company today for about 20mins to ask some questions to ease some doubts I had.
The company have had a draft announcement ready which the ASX have looked at, but are wanting additional information. So the market will receive an announcement once the ASX are happy with it. Padbury are hoping this will happen this week.
The initial announcement/agreement on the 11 April 2014 hasn’t changed. And from what they know, not a scam. They released the announcement which didn’t state the parties. This was due to the privacy factor agreed to and if they were named then, this could have been a breach of the agreement.
They informed the market of this material information when they knew. I got the feeling that the ASX should have stopped the initial announcement in the first place if they wanted additional information.
They are currently waiting on the first tranche to come through, which would likely confirm the financing. If it doesn’t, both parties walk away with no costs incurred, leaving Padbury in the same position before the agreement.
So I would suggest that we just wait for the announcement which should include the agreement and look at the facts.
PDY Price at posting:
3.3¢ Sentiment: None Disclosure: Held
