Yoda. As you have posted, company announcements to the market via ASX should be factually correct. And if not, or if facts change significantly, then a replacement announcement should be be given to ASX to keep the market properly informed.
The Investor update released by CGA on Aug 22 could be easily classified as " suggestively accurate" and putting the "most positive face on past growth and future expected growth".
The most recent advice in last two days of the loss of significant institutional mandate(s) means the growth rates stated and/ or projected in that release 5 weeks ago have now been totally reversed with FUM now $60m less than the original prospectus levels of May 16. And as a result, revenues would also appear to be now closer to the prospectus level of $5.3m pa.
Based on the 4C's over the last 12 months, these new nos suggest a current cash flow shortfall of $3m pa.
ASX was advised, a revised Appendix 4E will be prepared and released.
No doubt CGA will also shortly post an ASX advice clarifying the updated facts ( FUM, Revenue Run rate, compared to the Aug 22 release - Investor Update - for both their shareholders, and to keep the market fully informed
DYOR
CGA Price at posting:
$1.00 Sentiment: None Disclosure: Not Held
