re: re : asic announcemnt There is still the massive court costs...

re: re : asic announcemnt There is still the massive court costs and of course CMQ's own massive legal costs.

More importantly for those that do not understand the significance of Chemeq’s guilty plea, let me take you back to history.

1) Failure to inform the market on the US Patent –
This may sound insignificant when CMQ has so many patents. Not so with the circumstance at the relevant time. A CMQ rights issue was closing and who underwrote the un-subscribed shares? Yes, your then beloved Executive Chairman Dr Graham Melrose underwrote the un-subscribed shares. And on the day of the announcement of the patent the share price closed almost 60% higher and the shareholders whose rights options that were taken up by Melrose lost the opportunity to subscribe and sell shares into the price hike. (Closed $1.78 on 5 Oct and $2.82 on 6 Oct with an intra day high of $2.95)

2) Failure to inform the market of cost increases between 10 Feb03 and 30 Apr 04.
In this period CMQ released copious amount of ASX announcements positive to the share prices and now admitted that it failed to inform the market of the cost increase! Those who lost money must be very keen to seek damages from the company that releases good news but kept back the all-important over-blown construction cost from the market. In 2003 CMQ raised $55.6M from the market (4/02/03 $10.6M; 25/06/03 $25M; 12/12/03 $20M).

There is a class action looming in the background from those that lost money. And has CMQ changed its corporate governance? If anything the announcements now contained 'very carefully chosen words' (borrowed a CMQ spruiker's phrase) which spruikers twists and tosses on forums to built castles in the air.
And some prominent directors are still on the current CMQ board cheering the "new??" corporate governance.

Cheers