I have a mixed view on the affairs of VIC vs HDY , and it not...

I have a mixed view on the affairs of VIC vs HDY , and it not just because I presently hold HDY and not VIC. I will make further comments in my next post over on HDY , however I will make the observation here that the issues appears to be largely as result of the ' rinse - repeat ' process which as we all know is a systemic problem with small cap spec stocks. Whether it be biotech , tech or just small cap mining. It applies right across this investing spectrum. VIC and / or HDY are no different IMO to any of the other small cap species plays.

The ASX of course seems to see it a different way with its focus on the commonality of ' sophisticated Investors ' and / or private clients of Everblu. This can be evidenced by these comments taken directly from the Companies update released to market on 12th December 2018. These points are largely being forgotten IMO in the overall discussion of the likely Hood of VIC resuming trading on the ASX of its securities.

" ASX noted that the vendors were substantially the same as the vendor group under the transactions the subject of recent queries from ASX in relation to the affairs of Hardey Resources Limited (ASX.HDY), with one different vendor involved in the proposed acquisition contemplated by the Company. The Company is aware that the vendor group’s business model is to identify and acquire rights to resources assets for sale to listed companies. The Board does not consider these circumstances to be detrimental to the Company or its shareholders. "

And as as result - this then transpires :-


" ASX has advised the Company that it will not permit the suspension in trading of the Company’s securities to be lifted until such time as ASX’s concerns with respect to the affairs of HDY have been resolved to ASX’s satisfaction. ASX has taken this view as a result of the similarities between the vendors of assets to HDY and the proposed vendors of assets to the Company. In ASX’s view, the submissions that HDY may put to ASX in response to ASX’s letter to HDY of 29 November 2018 (as announced by HDY on that date) may be relevant to the Company given the similarities in the transactions "

So we then have a situation whereby ASX remains steadfast in their views ( and for good reason's - which I will address in my next post on HDY ) and as stated by this :-


" Given ASX’s ruling under ASX Listing Rule 10.11.2, if the securities of VIC are reinstated to trading, for so long as ASX considers the Blumenthal Parties to fall within ASX Listing Rule 10.11.2, any future issue of equity securities by VIC to a Blumenthal Party will require the approval of VIC’s ordinary shareholders under and in accordance with ASX Listing Rule 10.11 and the Blumenthal Parties and their associates will be excluded from voting on the resolutions to approve such issues. "


So because the Company sought approval to raise capital for the mystery ' Acquisition ' as per this:-


" Proposed Capital Raising The Company sought, and received, shareholder approval at its annual general meeting held on 30 November 2018 to complete a placement of up to 750,000,000 shares at an issue price of not less than 80% of the average market price over the 5 days on which sales in shares were recorded before the date of issue. "


The company then retracts the whole mystery ' Acquisition ' and says it won't then proceed if it means it will prevent itself from re-listing and that it will agree to this in so far as the common investor / shareholder being Everblu.

" In light of this, the Company has agreed to seek approval of its ordinary shareholders for any future issue of equity securities to a Blumenthal Party under and in accordance with ASX Listing Rule 10.11 and the Blumenthal Parties and their associates will be excluded from voting on the any resolutions to approve such issues. "

There is more of course to the whole story , which IMO may prevent VIC from ever being able to re-list .....and it is not strictly as a result of what happens on HDY. Unfortunately with VIC it actually goes back further than HDY ....and I will reserve my comments on this to another post while you all digest this information. I still give VIC a 50% / 50% chance based on the one hand that the transactions can never be ' re-balanced ' or re-constructed for VIC ......however on the other hand they can re-constructed for HDY. Think about it , and Best of Fortunes to ALL holders of Both Companies......