Wouldn't be surprised if Merlin management are using this ASX phoney suspension as a way to stop trading until wet season is nearly over and the flow of news commences regarding new mining plan, installation of new equipment and re-commencement of processing. There is no time frame set by ASX, in theory it could take a company months to find suitable new directors.
ASX’s rules regarding the disposal of assets to persons of influence contained in Chapter 10 of the Listing Rules, the use to which a listed company’s funds are put is not something which ASX can take action about, because decisions made by management about the use of a company’s capital are largely regarded as within their discretion. That discretion is limited by the legal and equitable duties that apply to company directors.
Therefore ASX are powerless when it comes to any action regarding the AXIS loan, the suspension is purely being used now as a ploy to buy time until mining updates can be made closer to the end of wet season IMO.
MED Price at posting:
0.6¢ Sentiment: Buy Disclosure: Held
