In the sequel to the issue by Monarch Corporation Pty Ltd of a...

In the sequel to the issue by Monarch Corporation Pty Ltd of a letter of demand, the CGI share price has crashed 70pc - crushing the value of stakes held by interests associated with chairman, John Palermo.

Palermo controls Finebase Holdings Pty Ltd, owner of 62.3pc of CGI capital.

Other big CGI shareholders include Monarch Corporation Pty Ltd, Primelane Pty Ltd and Jason Peterson's Celtic Capital.

Who/what controls Monarch Corporation Pty Ltd?
Answer: Anthony Palermo, 60, 35 Birdwood Parade, Dalkeith, WA.

Who/what controls Primelane Pty Ltd?
Answer: Anthony Palermo, 60, 35 Birdwood Parade, Dalkeith, WA.

Monarch Corp has issued CGI a demand letter relating to an allegedly disputed convertible note agreement debt of $390,000.

Monarch has issued a similar letter of demand on Pharmanet Group (PNO), this time for $858,000.

Adding Primelane's claim against PNO for $422,500, the overall sum being sought by the Anthony Palermo interests totals $1.67m.

John Palermo, a JP and chartered accountant, is chairman and secretary of both PNO and CGI.

In PNO's case he called a trading halt before revealing the debt actions by Monarch and Primelane.

In CGI's case he has yet to seek a halt.

And the ASX has yet to issue him a "please explain" query.

John Palermo is a busy man. He's also chairman of Pelican Resources (PEL).

He is a key shareholder/option holder in PNO, CGI, PEL and OBJ.

Another family member, John Joseph Palermo, is secretary of OBJ and PEL.

While value of the substantial CGI stakes held by the families Palermo has today fallen 70pc, value of Palermo holdings in OBJ has eased just 5.5pc.

Meanwhile there's another twist to the Palermo influence on PNO, CGI and OBJ - Tuto Phong of RSM Bird Cameron is auditor to the three companies.