Two loss making businesses merge! Has all the makings of an absolute disaster!!!
If neither business has worked out how to make money per the past 5 years, what chance do they have now as a combined entity?
CCE has to off load EMC because they are a basket case and ultimately would have resulted in bringing CCE unstuck, meaning CETO would never see the light of day.
I think it is a positive that EMC is gone. Looks like CCE may have dodged a bullet but they will be licking their wounds.
Still no explanation from the board on who was accountable for such a poor decision? I still think the original transaction should come under scrutiny by ASIC. What was actually sold to CCE?
MO should fall on his sword, this debacle happened under his watch. Who gets paid $750k pa to deliver poor decisions that don’t benefit shareholders?
I note in the announcement that CCE retain R&D tax back incentive and that it is looking at potential expansion into other synergistic marine renewable technologies and opportunities. RED FLAG! Why doesn’t CCE just focus purely on commercialisation of CETO??? That should be it’s one and only agenda.
All that said, in this MPower transaction there is absolutely no upside here for shareholders, we have again all been duped! As RB rightly pointed out, expect more dilution on the back of another CR.
This business is a complete, total and utter sham!
CCE Price at posting:
2.2¢ Sentiment: Sell Disclosure: Held
