I was told 1 week prior to suspension if I didnt accept...

I was told 1 week prior to suspension if I didnt accept conversion of the notes at 2c I would get them at a later date at 25c ie diluted by 1000%.

"If you do not accept the election please be advised that Arturus have a right to elect at any time to convert the notes to shares at 25c per note – a SIGNIFICANTLY HIGHER price – AND NOT redeem them for cash"

They gave me 70% of the stock and then after suspension told me I had another 30% of stock which I never had the oppurtunity to sell anyway. It wasnt until I notified the brokerage house I appeared to have been short changed did they give me an extra 30% more shares.

I was effectively boxed in, I emailed FOS at the time with my reservations and reluctance about taking stock rather than notes. They didn't respond.

Funnily enough the brokerage house emailed me this 12 months earlier "who would even consider converting to shares when the company has no assets and no business? That is obviously why they have not made a conversion (or redemption offer) to the noteholders."
Pretty conflicting advice....

I will give the brokerage house credit in that in late 2010 they emailed the ASX

"1. We have regularly sought information and clarification from the company but have usually been met with a total lack of response or a lack of detail or certainty which makes it very difficult to inform our clients in a meaningful way – this is the experience of all stockbroking firms and clients who have contacted the company – Baker Young have made a complaint to ASX in relation to the lack of disclosure and whether the company was trading in an informed market."

Typically nothing appears to have been done by the ASX and it was a third party more than 2 years later who have asked for the liquidation.

Yes my class action will be directed towards the stockbroker firm in question, others may be looking at taking action against their own firms.

Will be interesting how far we can take this as many parties are involved such as accounting firms, brokerage companies and even the ASX appears to be possibly negligent.



Anyway...will keep you posted. Wont be letting this one go through to the keeper.