I have a few HTI's for a bit of a hope they would recover slowly one day (as I have made a few $$$'s trading it more than once or twice in the past), so feeling some of the pain along with the long term holders.
fang - you was right it seems - bargepole might have been best to avoid grief.....
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The following ramblings all assume that the MBO offer extends to the MPS pulse tech AND the coatings division - as a whole.
If the MPS pulse tech remains with HTI - then there is still some additional cause for hope for HTI's future - and todays announcement could have been worded a little more clearly in that case.
I would hope we will see some clarity soon.
Also - none of this applies if the majority of approving shareholders have been reached - as it is a done deal then (suject to ASX rules only).
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Here goes... long winded... but just for the brain exercise, OK?!
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Still a bit strange that the last reports were all full of prospects (monster tunnels / multiple housing units / subcontractor school / mass produced low cost pulse units etc) and now this curve ball, with no warnings other than the ongoing and somewhat obvious struggle to turn a profit.
I understand the losses - but it seems a bit grim to let the business go for just $100,000 as is suggested in SMH writeup and HTI announcement. I thought that struggling or not, HTI had still created an engineering solution / a market name / and revenue - surely not worth $100K?
I guess you can get anything in a fire sale.... but I hear of guys selling commercial window cleaning / and office cleaning runs for $20/30,000... so would have thought HTI might be worth a little more than the assets and $100K? Admittedly the window cleaning seems profitable (as not ASX listed....!)
Will be very interested to see how this pans out - and what ASIC/ASX has to say if anything - as it has to be met with ASIC/ASX approval in some way (nano cap or not, there are still rules here)?
Cannot see how this sell off can be too cheap, or even allowed - to substantially benefit others outside of the ASX listed entity of HTI - immediately it is sold off (assuming as it has been hinted to, that HTI is profitable without the "horrible", overbearing ASX structure).
I would have thought directors would have been forced to compensate share holders for that factor... otherwise what possible incentive was there for directors to make the business work?
In theory they could let it crash, buy it for peanuts, and then sell it for profit, or let it make profit - the very next day...? Not accusing anyone of anything - just reasoning that there must be something, some gesture in the wind regarding this MBO takeover to benefit shareholders - if the very same directors who ran HTI inside of ASX - will be seeking to benefit from the very same business once it is outside the bounds of ASX...
Maybe HTI will keep the licenses / IP / processes - and take a royalty from future work??? Dream dream dream...
Anyone sure of shareholder percentage vote that must be affirmative for them to try and push this thru unchallenged?
Gray has 9.08% plus 1.75% held in Lippo Grebstad 4.93% Cranswick 1.79%
Lippo hurting the most at 30.86% (less Grays share)
(Figures from last "annual" - so could well be out of whack)
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Thought that struggling along and the possibility of a big HTI contract win - would have at least held the market cap at a couple of million $$$'s. Now with this news - the market has not much option than to value it at $475,000 plus unpaid debt (0.001).
Wasn't aware that an ASX listed company could just chuck in the towel like this. Would have at least thought they would have had to approach share holders for capital first?
Option a) pass the hat among mug punters and dreamers, take a few hundred grand off them to keep flogging this thing - and allow said dreamers to stage an orderly retreat if they choose - or benefit if fortunes change.
OR
Option b) sell the lot - name / reputation / tech / goodwill / contracts for a few quid - and you, dear shareholder, can go and jump in the lake.
I think I might have chanced option "a" and a bit more dilution - or pushed for future royalties / commission?!
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Guess its a bit like an O&G drilling a "duster"? But I am not convinced the same rules apply in this sector.
Just imagine the uproar if COH (Cochlear) made no profits for 5 years. Share price drifts down, then the directors buy the whole thing at a price THEY named, and thise same directors started profiting nicely 6 months later outside the ASX structure... free of all the pesky shareholders and ASX fees.... profiting from the tech and contracts that shareholders built in the past.
Completely different scale - but principle remains the same.
I am not denying fire-sales happen (eg - INL selling their plant during the GFC at a huge loss). I am just looking at it from the point that directors themselves are technically seeking to benefit from that fire-sale.... some sort of conflict of interest there, surely - if share-holders are not compensated?
For what measly % its worth, I will vote NO, if they don't offer at least offer my money back... rack off... go get your own contracts... find your own technology and processes that work. Do the hard yards yourself.
I'd sooner flush my money down the toilet, and have the HTI locked away under patent, than sell out a little Aussie ASX battler (easy for me without tens of thousands "invested").
Sounds a bit "soap-box" I know - just think that possibilities are either...
a) the MBO takeover has a surprise in store (some sort of compromise / sweetener)
b) the MBO will not be allowed to go so cheap at such immediate detriment to SP without holder benefit, if directors seek to benefit financially from the sale
c) I have know idea (highly likely)
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Also makes much more relevant the $250,000 (plus interest) that HTI are apparently due - currently under appeal in the courts - from past director.
What a saga that is... but would certainly have been nice to have had the cash in their moment of need.
Not sure who would have a claim on that cash if it ever is repaid.
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Was a little bit sus' that on the previous days trading - when near 3 million shares sold down to the 0.004's and then a 0.005 "cover" bid kept the finishing price nice at 0.005.
Anyone here ready to fess up?! Well done anyways.
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Will be watching closely - if nothing else for the exercise in market games / wind-ups / rebirths, if it is to be.
Regards and fellow HTI sympathies
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Mr Philip Gray - you sure look and sound "the part" and seemed more than genuine in your attempts to get this thing moving. All the best mate. Hope we still will hear from you on BRR from time to time. A valiant effort and worthy of a round of applause. The business did not fail as such - someone wants it still. You put you own $$$'s on the line - I have never seen that before. Good job chief! Three cheers.
bsh
Position Yes Sentiment: Without Clue
HTI Price at posting:
0.1¢ Sentiment: None Disclosure: Held
