Just looked at the Federal Court Judgement against the SMSF of...

Just looked at the Federal Court Judgement against the SMSF of Domacom's Regional Manager for Victoria, South Australia and Tasmania, Chris Benson.

It seems the Trustee for Chris Benson SMSF fund, Aussiegolfer P/L was the party to Domacom's " Test Case" in the current Federal Court action.

A cost order has been awarded against that Aussiegolfer P/L to the ATO in relation to the loss of this case.

Subject to an Appeal at the Federal Court, One of my questions is: Does Domacom, who stated that they were funding Chris's costs up for the costs plus the Fringe Benefits Tax on those costs for their employee.

If so, It would seem that these will costs ( with or without FBT) it will accelerate the remaining cash burn for Domacom. Prior to this order ( based on Domacom's November AGM numbers) Domacom would likely run out of funds by the end of March 2018.

I am yet to see the promised December 2017 announcement of the cash strategy as proffered in the November 2017 AGM.

Perhaps a Hybrid Capital raising solution ( now urgently due) could be FUNDED AND UNDERWRITTEN by the CEO Arthur Naoumidis, stumping up some contributory capital, on a ex gratia, non recourse basis that would increase the cost of his 20 million shares from 50cents to $5 Million ( obviously with the consent of the shareholders, which no doubt would be unanimous).

This Contribution by Arthur IMO would give Domacom a 12 month capital widow to allow Arthur sufficient time to deliver the outcomes he has previously promised ( without talking about the dismal IPO).

IMO opinion it's a bit late to dilute shareholders on any prospective Rights Issue ( what do we get X for 1 at what price between .05 and .10).

If Domacom attempt to proceed on the basis of a dilutive Rights Issue , then the first casualties should be the Directors and the Senior Management..... Not the shareholders .

Time is now very short, Arthur should deliver his plan this week as he indicated.

Arthurs comments last week following Domacom's Federal Court Loss were as follows:

ASX/Media Release 15 December, 2017 Court rules against SMSFs investing in DomaCom sub-funds owning properties leased to related parties Highlights • The Federal Court has indicated it will not make declarations that an SMSF can invest in a sub-fund that the SMSF and its related parties control if the sub-fund leases a residential property owned by the sub-fund to an SMSF member’s child. • The ruling only affects an SMSF if its investment in a sub-fund constitutes 5% or more of its total assets. • The ruling has no bearing on DomaCom’s current business model. The Federal Court will hear the parties today about what orders should be made. DomaCom CEO, Arthur Naoumidis, said: “After the Court hands down its orders we will study the judgments closely and make a further announcement about the effect, if any, of the decision on the DomaCom Fund.” ENDS______