A40 (ASX) my letter to korda

Originally posted by luckydog ↑

I have serious objections to the handling of the the Alita Resources deed administration by your company.

The company 'Alita Resources' did not update the market in a timely fashion, traded very likely while insolvent and had a director (Mark Turner) disposing shares whilst having insider knowledge which was then not disclosed to the market.

An incident allegedly occurred at JBJ’s ( Jiangxi Bao Jiang Lithium Industrial Limited) facility on 18 May 2019. On 26 May 2019 JBJ notified Alita and claimed the incident was a ‘Force Majeure’ event and requested that next shipment in June be put on hold.
Discussions continued through June and July 2019 with the ‘June’ shipment of 11,000 tonnes of lithium concentrate dispatched on 1 August 2019, although payment of approximately 11% of the price was agreed to be deferred for approximately six months.
The market was not informed that JBJ had requested in May to put shipments on hold.
The market should have been at least informed about the difficulties with JBJ.

As a consequence Alinta became insolvent sometimes in the May/July period 2019.

The company has provided seemingly positive market updates on 11/07/2019 and 31/07/2019 which have further misled shareholders.

One of the directors (Mark Turner) disposed of 500 000 shares on 19/06/2019 whilst being aware of the delay/cancelation of shipments to JBJ whilst shareholders where left in the dark!

In my obinion these allegations need to be investigated by ASIC as shareholders have lost hundreds of millions of dollars.

Lithium is also a resources of national importance for Australia and the company should not be put in foreign hands.

Shame on all who are part of this process. Alita was a $ 400 000 000 company in Dec 2018 so the damage is massive!

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Another thing to add luckydog is that a resource update was due in August just as we went into voluntary administration.
I think share holders should raise the point that we should be able to see these results because any substantial increase in resources/reserves would raise the value of the asset.
As Well to find out if there was no significant findings or if they even did a drill program at all which also is misleading to share holders.