I have thought long and hard about this given the recent ASIC rumblings and I have come to the conclusion that I think they will be able to continue to trade on the ASX and also raise more capital.
My thought process goes to the shareholders and ultimately what is the best outcome for them. Also, given the limp wristed company laws and ASIC's inability to bring a case against the directors in anyone's lifetime.
Doesn't Slyth still has court actions outstanding from his last boiler 5+ years ago? If so, any action started here is likely to last many years as well. Hopefully he will die before ASIC waste too many public legal expenses on the old bastard.
If CVI are not able to trade then the existing shareholders lose as they can not dispose of shares. If CVI can't raise capital then they borrow from Global (with CVI assets as loan security, you can bet those assets will transfer to Global if CVI are just 1 day late on loan repayment and at 5c in the dollar). CVI can sell assets to their mates, again shareholders lose. However this ends up the shareholders WILL lose as the CVI directors clearly run CVI like their own personal cash cow, the difference is how long until the shareholders lose, months or years.
Of course in the end the new shareholders will lose but provided that ASIC force CVI to continually disclose all risks in announcements and prospectus's as they are now then the new shareholders that lose will get a sharp lesson in DYOR and deservedly so.
I think that the bad guys are going to win this one unfortunately and Slyth will go to his grave an innocent man by the time that ASIC have their day in court.
CVI Price at posting:
0.4¢ Sentiment: None Disclosure: Not Held
