The non-renounceable offer states $1.1 million of the capital raise will go to pay outstanding creditors. This does not include $1.6 million due to the drilling contractor that is being foregone by an equity raise.
The quarterly report at 31 December 2017 showed 852,000 in cash. Insolvent trading is obviously the company’s ability to pay its debts when they fall due.
The ASX was kind enough to issue a query to PRl on the 7th of Feb 2018 after the latest quarterly report querying the ability of PRL to continue to meet its obligations, no doubt concerned with the cash level and insolvent trading.
Subsequently we see the capital raise acknowledging creditors of $1.1 million and further debts to drillers of $1.6 million AFTER the ASX has already flagged this. Has PRL incriminated themselves acknowledging trading with insufficient cash to meet their obligations? Isn’t this the definition of insolvent trading and a breach of a Director’s fiduciary duties?!!!
Maybe I’m missing something.
To people honestly believe David Casey has foregone his salary out of the good of his cholesterol and plaque filled heart? It would be more incriminating taking a salary now wouldn’t it, with creditors already exceeding the cash balance at 31 December.
Perhaps someone should start getting on the back of ASIC regarding this mob. They must be skating very close to breaching their listing rules.
PRL Price at posting:
0.4¢ Sentiment: Sell Disclosure: Held
