As an Addendum to my earlier comments regarding inadequate Corporate Governance, we now have management being caught robbing Peter to pay Paul which goes beyond a corporate governance issue. Breaching of the ring fencing of funding terms is in some cases a criminal activity, so it is not clear how any of the current management or board members should or can survive the restructure. The real question is whether there will be any criminal liability for misappropriation of funds. So as in the case where there may be a bang of uptick in Grieve production for the shoot the moon speculators, there should also be a big bang when they shut the door after dismissing the current senior management team and board. Hopefully D&O insurance is not plundered to protect this malfeasance.
Equity Value is toast.
ELK Price at posting:
2.2¢ Sentiment: Sell Disclosure: Not Held
