Problem is that on 6/10 the finance appeared to be proceeding normally as their announcement (6/10) said:
"bridging facility has been increased to AUD$5.0 million with AUD$4.5m now drawn by Valence Industries to meet its current requirements" and then "The Company is committed to funding its expansion program primarily through the syndicated finance facilities"
This was confirmed in presentation (slide 18) of 23/10 (after CD stepped down & RM to take over on 16/10) which said (note no hint of only producing 2T/day):
"Interim secured bridge facility in place –Total of A$5m with $4.5m drawn down –Continues to support current operations"
Note no statement of the appalling low production (which was an average of 2T/day from 1/7 to 30/9) until 30/10 (i.e they went for 4 months side stepping material information with evasive statements - maybe they strung Chimeara along also). I was fooled and kick myself for missing the short window of opportunity to sell (from 1/11 to 13/11) as I was distracted onto other things. I don't know how you address this type of issue, maybe a job for ASIC/ASX? I note that the annual report indicates 13 board meeting a year - they would have had 4/5 board meetings over the 1/7 - 30/10 period!! - what did they know which they did not announce to the market?
VXL Price at posting:
11.5¢ Sentiment: Sell Disclosure: Held
