Why did the Board move the headquarters of the company from NSW to WA when good Corporate Governance dictates meetings are held where the majority of shareholders reside and the mines are in Victoria?
Why did the Chairman not step down when he became CEO as the company's constitution calls for the Independent director to be lead director and in the case of only one independent director therefore Chairman as was the case previously?
Why do we still have only 2 directors and no independent directors?
Why did the Board announce after the 2017 Capital Raising that money could be put aside to repay the notes when this was obviously not the case?
Why did the Board ignore the numerous warning of the auditors and not put money aside for notes?
Why did the Board potentially mislead the ASX and definitely the shareholders in a query in March 2018 into the company's financial position and imply that there were no financial problems when the company had not put money aside for the notes?
Why did the Board spend so much, $8m in the March and another $8m predicted in the June quarter when they had not put money aside for the $2.5m note?
When the company announced that the major shareholder was taking over the note at the incredibly generous .35 cents not 3.5 cents, were Squadron offered to extend the notes @ .35 cents or was this excessively generous offer only made to the major shareholder?
Also what offers were made to Squadron and can the Board outline what institutions or individuals were approached in regard to refinancing?
To remedy this dire financial situation the Board announced a 5 for 2 rights issue @ .4 cents to raise $10m
For every 1 million shares held shareholders needed to stump up $10,000. Why did the Board announce this knowing that they would not raise anywhere near $10m and possibly only $2-3m but this rights issue would cause the share price to drop and therefore also the market capitalisation to plummet?
Also then the Board announced that there would be $7m in con. notes available to employees and the major shareholder at a discount price of .35 cents. Why did the Board offer 2 billion shares to the note holders with security making the 5 for 2 even less desirable but ensuring that the note holders would therefore hold the majority of shares therefore setting the note holders up to take over the company?
So why did the Board want to implement a capital raising that would ensure that the company was taken over by the note holders and hence wipe out existing shareholders equity?
CTL Price at posting:
0.9¢ Sentiment: None Disclosure: Held
(20min delay)
