largest backdoor listing in history, page-7

saracen10

"Why not go through the front door as an IPO."

Yes, I guess valuation is a problem.

Another problem, once much discussed over at GCN threads, is that P1 gave away free shares to GCN shareholders. This was to get a shareholder spread for listing. Unfortunately giving away free shares to individuals does not conform with ASX listing rules - a point that seems to have escaped the notice of Sino Investment Services (lead manager for the listing of P1). SIS faced the same issue with the listing of First Mongolian, and GCN had to retract the stated significance of the free issue and move to a new issue of paid for First Mongolian shares (see GCN announcement of 19th March 2012 for the outcome of ASX's rap over the knuckles).

So P1 would have had to go back to the GCN shareholders, who had free P1 shares, and ask them to pay some $2,000 for a new issue of shares that would get P1 the necessary spread. That would have meant issuing a prospectus, with details of how the independent valuer (name still unknown) came up with a jaw-dropping valuation of just over 30 cents per P1 share, which led to P1's anticipated capitalisation of around $300 million dollars.

I guess P1 and SIS just found it all too hard, so P1 failed to list, in spite of repeated assurances that listing was imminent - an assurance that P1 must have given to TTV, when they reneged on paying the cash earlier agreed to. In this connection, TTV's announcement of 12th March is worth reading again.

IMO the new convoluted proposal (it reeks of a Baldrick 'cunning scheme') has so many internal and external hurdles to jump, that I can't see it coming to fruition.