yes you can whinge!
The company claims is it rebuilding its pipeline of sales from the damages of Covid but was there ever any pipeline of sales??
1) Laurence Freeman the then chair of Phoslock took significant amounts of money off the table in excess of $20m during this period.It beggars belief that he had no knowledge that the company he was chair of and and major shareholder had totally fictitious financial statements
.2) Phoslock had already confirmed in its long-delayed 2020 annual report, that forensic accountants had uncovered “potential misappropriation of funds”, the“falsification of invoices”, “undisclosed related-party transactions” and“payments to third parties where the ultimate beneficiary was unclear … or otherwise suspect” in its China division
.3)The trouble started at Phoslock in June2017 when chairman Laurence Freedman invited Zhigang Zhang and later Ningping Ma to join the board and heavily incentivised them to build a new revenue stream from China. The company issued 50 million performance options to Zhigang, Ningping and other Chinese managers. Their revenue hurdles were met in 16 months flat and both directors netted at least $20 million.4) But while the new revenue was booked, not very much of it was actually collected. Superb workt here from house auditor KPMG and the chair of Audit, Brenda Shanahan. KPMG eventually extricated itself from Phoslock at the annual meeting in May. Mortifying stuff.
5) Non-executive director Brenda Shanahan chaired the board’s audit committee from 2018 and is still there??
Phoslock first disclosed the discovery of accounting irregularities in October 20.