Hello BeetrootpieIf no one takes up their rights issue, which...

Hello Beetrootpie

If no one takes up their rights issue, which subject to shareholder approval will be underwritten by Co investor, then Co investor will own 94.2% of the company if it takes up all of the rights. I'm not sure whether this will trigger a compulsory acquisition.

My complaint about CQU is not that I have lost pretty well all of my money (I put in more than $150,000, I a big boy now and I know the risks of share trading) but I want to know why the shares fell from more than a 1$ to pretty well worthless in such a short period of time and I want to know that all the dealings are honest and transparent and that we, the shareholders, are not being taken for a ride. I am not suggesting we are but I do feel that the shareholders are entitled to an explanation. With projected FY10 revenues of $61.9 to $68.9 million and an EBITDA margin of 3.5 to 7.5% something does not gel.

I point out that non or the funds from the rights issue will be used to advance the Company. Five million will be paid to Co Investor and the remainder will be used to cover restructuring costs. With a reward like this what incentive is there for anyone to take up the rights issue. I am going to vote against Co Invesor being allowed to underwrite the rights issue because I don't think this is fair to the shareholders.

I also feel it is neither fair or reasonable to reward those directors who presided over, and were responsble for, the collapse of the company with generous payouts.

I would be a lot more comfortable with an independant report from someone like KPMG on the affairs the Company rather than from the current Directors. I am not implying there were, or are, any misdeeds but commerical prudence and experience with Boards of Directors of public companies tells me to at least check this.

I have no alternative solution other than to put the Company into liquidation and hope that the salvage cost is greater (after payment of debts and salaries) is greater than 0.6 cps. Howver we do not know this as we have no data.