The misleading of the market by the company has been huge!
Only 3 weeks ago Greg Martin assured shareholders a small capital raising was being undertaken due to volatility of wholesale electricity markets. Although all was clearly not well, no indication was made that the company was anywhere near going bust. Then when a court action was initiated, the company assured the market it was unjustified and would be vigorously defended. It was reasonable to assume the court action would be quickly resolved, given the capital raising of the company. Nope, despite the capital raising, turns out the money to pay the bills still wasn't there!
The company must have been aware of its cashflow position in late November. I pity those who participated in the December capital raising, I think one investor became a substantial holder 7 days before liquidation from memory...
If this was a larger cap company, there already would be no shortage of media scrutiny, and large investigations would be in the process of being initiated. The way this company has collapsed certaintly warrants thorough investigation. I hope the larger shareholders, assuming they have also been equally deceived, pursue the incompetence of board and management to the maximum extent possible!
JGL Price at posting:
3.8¢ Sentiment: Hold Disclosure: Held
