small co sells out, page-14

Hmmm.

Accounts dont mention them but AXQ's product disclosure statement says in WINDING UP "the Constitution provides that the Responsible Entity is required to first make payments to itself incurred prior to or in connection with the winding up, and in relation to any creditor of the Responsible Entity (Allco Investment Limited) in connection with Max." The remaining funds which are realised by the Responsible Entity on a winding up will be distributed between the CPU (convertible preference units) holders and any remaining funds will be distributed to the Unitholders.

The product disclosure states there were 100m of these available at AUD1 each. I cant find out how many were taken up though. At worst case scenario though if all CPUs were issued and then paid back at face value (because the PDS says they've got the option for doing this) then AUD100m would be taken out axq leaving 23m for unit holders. At 172m ordinary shares that's around 13.4 cents per ordinary share - which is not at all pretty. Of course if CPUs are a dud issue then we holders are much better off ceritus paribus.

All of this doesnt consider the nasty issue of fire sales...

I have written to Allco asking for info about the number of active CPU's + what their strategy would be for winding up + if there is anything else material that a shareholder has the right to know. I don't hold high hopes of getting a response ...... if I do I will post it.

Cheers and good luck