Mr Pauley has put in a complaint regarding the convertible note to be issued which was to be used for phase 3 and in particular the number of shares that would amount too giving the holder substantial influence. In light of the subsequent information and cancellation of phase 3 the convertible note is questionable in its relevance. Looks like the Takeovers panel have essentiall said there is no issue unless or until the note is going to be issued, which may not happen as part of the restructure, new direction, strategy, or what ever eventuates if anything. I think the panel has opted to do nothing at this time as the note may not eventuate.
What does this mean, right now nothing, bigger issue right now is what is IOR going to do, become or even is it worth while continuing at all. If IOR can be an onging concern with a new direction then we should be informed on what, when and how and part of that will be cash requirements and funding options. Anything Management come up with will likely need a vote by shareholder considering the probable large change in direction/business and as part of that I would think all current funding arrangements will be examined and cancelled/altered to suit the new strategy. Shareholder will then have a chance to reassess.
It is nice to see a government department respond to Mr Pauley’s request to look into the matter.
IOR Price at posting:
6.9¢ Sentiment: Hold Disclosure: Held
