I am trying to draft a letter of complaint to the ASIC & ASX. I have used @Foxben couple of posts to put one together as a template. I have posted it here so that others who are more knowledgeable can add and change it to whatever is needed, and we can get to a very good draft letter that can be used by everyone of us to send off to ASIC, ASX, local member. If we work together as a whole you never know what could happen. I have a lot invested in RES and have done since 2008, lets get our voices and complaints heard.
I have lodged this complaint on the basis that the ASX listed reports showed the company Resolute Generation Limited (RES) had net underlying assets of approx. 150M. Despite this, RES seem to be getting sold for nothing and with no oversight from anyone in Australia. The documentation supplied to gain Australian investment in RES on the ASX was either false or misleading. The Australian shareholders have been scammed or simple apathy from McGrath Nichol is allowing the sale of a valuable asset at next to nothing so that they can tick a box and move on. The sale of the assets of the ASX listed company does not seem to be following any oversight or the reports that everyone here used to invest their hard-earned money were misleading or worse.
I invested in RES on the basis that the net assets were above the share price. If RES failed, the assets should have been sold at a fair price and the shareholders should have received the bulk of their money back or a profit when the assets were liquidated. If RES succeeded, there would have been significant profit. Simple fundamental investment.
Currently it appears that the sale of the assets is being handled by an overseas liquidator (Genesis Corporate Solution - http://gcs-sa.co.za/) - and there is no control by an Australian entity that can ensure a fair sale of the assets. RES was valued as an undeveloped mine with contracts in place at approx. 150M in 2020. Coal prices have increased since then and it should be worth more. It appears that the mine with all contracts still in place will be sold off for fractions of its value.
Currently, Australian shareholders will get nothing as the asset appears to be getting sold for next to nothing in South Africa and none of that will ever come back to Australian shareholders.
The apparent events of the past 12 months set a dangerous precedent for abusing Australian shareholders investing in companies on the ASX when the assets of an ASX listed company are not within the control of Australian ASX rules.
No one is working in the interest of the Australian shareholders.
I own shares in RES on the ASX. RES owns shares in the Ledjaja coal mine. this is the primary asset of RES. The Australian liquidators are saying they have no control over the sale of the asset of Ledjaja coal as it is based in South Africa. It can be sold in South Africa for 50c if the directors of Ledjaja coal agree to it.
So on that basis, I invested in an ASX share in good faith, yet the company I own shares in has zero control over their primary asset.
This means that any international asset owned by an ASX listed company does not fall under Australian rules or ethics. I then hope and trust that South Africa has a fair due process in place and that the South African liquidators have my best interest in place.
