The ASX announcement was crafted to create a maximum positive...

The ASX announcement was crafted to create a maximum positive effect on the share price. Mr Williams know very well that the judge in the July 3 hearing determining the amount of fines will consider a number of important issues such as remorse, steps taken to prevent a repeat of the contravention, etceteras. Mr Williams’ announcement will likely shift the fines towards the maximum limit allowable under the law.

The fines, court costs and CMQ’s own legal bills are likely to make the $170K contribution to ASIC legal cost looks paltry. Look out for class suits from those that lost money arising from CMQ’s admitted corporate governance failures.

IMO the guilty plea is a short term attempt to revive CMQ’s survival probably due to the lack of any possible good news such as the fulfilling of the revenue covenant, sales and production problem. It is consistent with the use of ‘bad news’ to ‘enhance the company’s fortune’ such as the resigning and sacking of production key personnel was reported as enhancing CMQ’s position as it moves toward commercialisation stage.

Isn’t it wonderful to read Mr Williams statement QUOTE “CMQ remains committed to full and proper disclosure, and we have in place a strong public reporting procedures to ensure CMQ meets all its continuous disclosure obligations”. Sounds very familiar even in the days of Dr Melrose, the same committed procedures for which CMQ now agreed had contravened its disclosure obligations.

Yes, we should all rush to buy CMQ shares with no reported sales revenue from the white Knight Inviro Animal Health Solutions for which goods had been delivered (oops sorry, Mr Williams later changed ‘goods delivered’ to ‘goods POSITIONED in South Africa’.)