Smelly G Spot offer, page-7

The Final 'Stop Order' has put an end to the 10 cent offer from G Spot Investments Pty Ltd which ASIC calls 'defective' in the order:

"........ there is a misleading or deceptive statement in the Offer Document or there is an omission of material required by section 1019I of the Act...".

".... ASIC is of the view that the offer document does not comply with section1019I(2)(b) of the Act because the securities in Planet Platinum have been suspended since 8 March 2013 and the market value disclosed in the Offer Document is not the market value of the product as at the date of the offer.  ASIC also notes that due to the suspension the securities in Planet Platinum cannot be traded on market......"   

Of course G Spot could make a new offer, at say $2 a share, after providing all the correct paperwork, but that is highly unlikely.

I am told that a shareholder rang Bryant & Bryant accountants on 5 August 2014 and advised them that "laws had been broken" with the offer but B&B wouldn't acknowledge that they had done anything wrong.

Under S.1019I(2)(c), G Spot was required to give "..... a fair estimate of the value of the product as at the date of the offer and an explanation of the basis on which that estimate was made...."    

The big problem is that PPN has been suspended from trading since March 2013 and PPN hasn't given shareholders an annual report for 2013 & 2014.  Without credible valuations, nobody really knows what PPN is worth.

Trimble's company METROPOLIS CITY PROMOTIONS PTY LTD [MCP] has to pay PPN nearly half a million dollars a year in rent but takes it back under a service agreement as a fee for collecting the rent from itself.  PPN effectively receives no benefit from owning the major asset on which the company was founded.  To work out a fair value for PPN, you have to work out its net profit before Trimble takes his cut.  

PPN's other source of income is Showgirls Bar20 in King St Melbourne.  BAR20 operates independently of PPN as SHOWGIRLS BAR20 PTY LTD and SHOWGIRLS BAR20 INTERNATIONAL PTY LTD .   I don't go there myself, but members have told me that if you slip the girls a few extra bucks, they will sing a very sweet song about management practices in all the King St strip clubs.   Those songs are very interesting and really need to be published after the Statutory Derivative Action.

To work out a fair valuation for Showgirls Bar20, you would need to remove all the non- essential personnel from the BAR20 payroll.  If friends, relatives and girlfriends can't strip, serve drinks or bounce drunks out the door, they don't belong on the payroll.

Last but not least is MCP's huge debt to PPN which was due to be repaid in full on 1 July 2014.  Without a board of tame directors to extend the loan, MCP will be in default.  The 26+ million shares that keep Trimble on the PPN board are in the name of Trimble's Cameron Lane Pty Ltd which is a Guarantor to the MCP debt under a 2003 Loan Facility Agreement.   

If G Spot's 10 cent a share offer had any credibility, the 26+ million Cameron Lane Pty Ltd  shares would be wiped out and Trimble's MCP would still owe PPN about $1 million.  Also I note from the PPN constitution that a director in default cannot vote.

Stay tuned for further developments and media articles.