re: implied asic is a distraction

“Quote: unconditional - money from orders has been counted as revenue even if arrives after june 30”.

How on earth could anyone think that CMQ had covered the revenue covenant if the SA money does not come in by 30 June just because it is ‘unconditional’. CMQ had been announcing the contract was unconditional from the day the contract was signed. Last year Mr Williams proudly announced the goods were delivered but he had since changed this to ‘being positioned’. CMQ had never been shy to announce anything remotely good for the share price. We had Dr Melrose announcing the sending of a small sample to New Zealand as a logistic wonder and we had Mr Williams counting the appointment of the non- executive chairman as a meritorious achievement. It would be unthinkable and highly uncharacteristic of CMQ to rephrase the delivered SA goods to “Positioned” instead of announcing it as counting towards the revenue covenant since it was already “unconditional & delivered” when Mr Williams rephrased it to ‘positioned’. Anyone arguing the SA contract is revenue in the absence of sale receipts should look up the dictionary for the definition of ‘REVENUE’.

On 15 March 06; Mr Williams said “ASIC & CMQ had agreed to delay the ongoing court process by a number of months. As a result, this matter is not presenting a distraction to the company”. The FACT obtainable from http://esearch.fedcourt.gov.au/Esearch?showDoc=24670312 shows the discovery process is on going and only the direction hearing was postponed from 11 April to 12 June. By announcing on 15 March that the 2 months postponement meant the 11 April hearing is no longer a distraction, it conversely implied that now that the 2 months postponement had elapsed, the 12 June hearing will now present a distraction to the company.

Isn’t it odd that since 15 March, CMQ had not released any update or shareholder’s newsletter despite the ASX ‘please explain’ notice on 28/4. There were no shortage of news after the AGM to 15 March & since then all news had gone cold.