opes:circular irony, page-5

  1. 106 Posts.
    Unanticipated costs in the equation:

    1/ Unapproved siphoning off off money - "a number of internal stock and cash movement irregularities" were noted by ASIC

    2/ Stocks being sold from margin loan that due to the sudden large volumes being pushed on-market cause the shareprice to collapse - "ASX release from Admiralty Resources this afternoon:Dear Sir,Director's Shareholding securing Margin Loan. The Company has become aware today that stockbroker Opes Prime Group Limited has been placed into receivership by the ANZ Bank today. Director Phillip Thomas has advised the Company that entities associated with him have a margin lending arrangement with Opes Prime with a facility balance of $2.85 million, with a current gearing ratio of 55%. It is now expected that this margin loan will need to be repaid or refinanced as a result of Opes Prime Group Limited being placed into receivership"

    3/ The receivers fees (significant)

    4/ Staff termination / superannuation costs

    5/ Legal / accounting fees

    6/ Non recourse loans to directors

    7/ Bank penalties



    When you factor in all these extra costs AND you have ANZ dumping the stock on market, it is no wonder that there maybe a lot less that 100% of the investors dollars remaining.

    J.
 
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