Q. Please advise what due diligence the Company undertook in relation to the Subscribers and in particular their financial capacity to fund the Subscription Agreement. 7. Please advise whether the directors of the Company consider that this level of due diligence was appropriate, particularly in light of the fact that the Subscribers agreed to subscribe at a premium of more than 2.5x the last 30 day VWAP of the Company’s securities (as at the time of the Subscription Agreement Announcement). Please include the basis for that view.
A. The Board of Xstate can confirm that financial due diligence was carried out in relation to the potential investors. The due diligence was carried out by the Board in conjunction with the company’s corporate advisors, Sanston Securities, who have a significant track record of executing corporate finance transactions in the Asian market, and who introduced the investors to the company. The investors were well known to Sanston Securities.
Agentm,,,The subscription agreements may indeed have been 'extremely binding'.... however you appear to miss the point of the ASX question.... and in any event 'extremely binding' has now become 'extremely naive' if one of the subscribers bound by the 'extremely binding' agreement was a bankrupt at the time....would you not agree?
DYOR
XST Price at posting:
0.6¢ Sentiment: None Disclosure: Not Held
(20min delay)