Hi @midastouch0707, according to the Cosmo annual report, their...

Hi @midastouch0707, according to the Cosmo annual report, their Net Liabilities were ($8,833) as at 30/06/23.

The Comso strategy appears to be:

• Convert the $1.44M loan into illiquidity before gifting it to ADG.
• Conveniently expunge the $1.44M loan from their books (to give the appearance of being solvent without being solvent).

The Cosmo annual report also mentions that management have resumed efforts to achieve some sort of liquidity event (e.g. Joint Venture Agreement / IPO / future sale of the Cosmo assets).

If a liquidity event doesn't materialize for one reason or another, voluntary administration would seem to be the most probable outcome. However, it won't be any surprise if the ADG directors use their magic cash wand & convert the illiquid shares they receive from Cosmo into another $1.5M+ 'interest-free & no-strings-attached' cash loan deposited straight back into the Cosmo coffers. Just a guess.