ASIC ..... surely you gest. The market is manipulated like this hundreds of times a day. ASIC picks token cases to make a point where it can. It can't even listen to half the complaints, let alone investigate them or prosecute them all.
Remember the burden of proof. They are entitled to sell unless doing based on insider info. They aren't entitled to sell in such as way to to deliberately manipulate the share price but in their defense they will simply say that its impossible to sell that quantity of stock without impacting the SP and ASIC would then need to prove intent which is difficult to say the least given that there is already an accomonious relationship established between the company and the investor. Surely the breach gives them reasonable evidence to claim that they "reevaluated" their position and decided to reduce their exposure which would be in line with them demanding their loan repaid after the breach which also happened.
One would assume that it would look dodgy if they then converted secured noted to equity but they could simply argue that they didn't believe that their was much chance of recovering much of their investment in any reasonable timeframe if existing management remained in control and thus upon reflection they felt that their was little security left in the secured notes and they had little choice but to convert their notes to equity and exercise their voting power to instigate management changes.
PS. Myronc, did management stick their heads out from behind the chicken wire and allow you to ask any questions mate ?
MST Price at posting:
0.2¢ Sentiment: Buy Disclosure: Held
