shareholder information sessions , page-40

i think the three issues ASIC would have a very close look look at are as follows:

1. No disclosure to the market that management had asked that some of covenants with NAB were waived as early as June 2010. I cant find any annoucement or mention of covenant waivers until the annual report which came out on 22/10/2010.

2. The missed vendor payments were also never disclosed to the market.

3. The last part would also be exactly when management knew of the $6m quarterly loss, Langes announcement on 20 October 2010 made no mention of this and he must have known about the loss.

So if you brought shares because you werent aware then there is a strong case they breached their continuous disclosure requirements. If I had of known of the banking issue, missed payments and $6m loss then i wouldnt have brought shares and therefore would not be facing a loss.

Also, so much for the non rollover of the NAB loan, it was being rolled over each month and not being extended but Lange kept saying that he expected it to be extended, he knew the financial position but kept saying he believed it would be extended.

Finally, management and Lange would have been sounding out investors about the inital $0.08 plan well before they got suspended. Again, if people acted on this info they are in trouble.

All that said, at $0.05 and an expected multiple of 5x EBIT its cheap.