I would not worry about the directors running huge debts before departure. The company has no cash and spending big on corporate AMEX or Diners is not an issue. The only option they have is to dispose of assets at ridiculous prices to their mates or raise capital and then spend it – they already tried this, it is limited to 15% and shareholders should consider voting to prevent any additional share issue. The directors need to be mindful that they have a legal obligation to act for the benefit of all existing shareholders. They can try to stretch they luck but some of their decisions could be reversed if found not to be in the best interest of shareholders.
TGX Price at posting:
3.7¢ Sentiment: None Disclosure: Held
