The main issue here is not future funding. I can't say I have seen this issue raised in any of the ASX queries? There are approvals of some $6m + funding in the pipeline for when operations recommence after the wet season.
The arms’ length nature of the OLD loans from MED to AXIS is the issue and purpose of MED’s loans to AXIS. $12m of loans accumulated since 2012 & documented as such. Could have been swept under the carpet as expenses but no was documented as a loan and has been done so since 2012. How much waste is there each year for most listed companies if you want to go through each with a fine tooth comb.
I can't see ASX being able to delist MED over a loan dating back from 2012 when they have allowed a window of trading for 6 years whilst it was documented in plain sight in annual reports. Obviously MED is going to have to appease ASX cut ties to the AXIS situation, employ additional independent director, create a new service arrangement & determine appropriate arrangement to address the debt between MED and AXIS. If these steps are undertaken then it will be a win for shareholders who deserve better corporate governance and board structure.
MED Price at posting:
0.6¢ Sentiment: Buy Disclosure: Held
