Yes, I?m flabbergasted. It?s an absolute disgrace. After many years in the wilderness we were now supposed to be on the road home. The company?s divisions were shaping up, the income streams were defined, full funding was in place through a $4.5 M rights issue at 20c in May 2010, a $1.9 M placement at 21c on 29th Nov 2010, and a $1.0 M SPP at 21c in Dec 2010.
Now they want another SPP when they have previously said that shareholder funding is complete.
At the EGM of 28 Feb 2011 John Manusu made a very clear statement on future issues of NSP shares: "I can tell you now categorically, that there will be no further share issues - no dilution from now on, other than the option conversions in Sept 2012." For added emphasis he then emphatically repeated that statement.
What should shareholders make of this?
All this comes after a profit downgrade (27 May) anticipating a loss of $2.5M to 30 June 2011 when the forecast had been a profit of $1.8 M.
It seems that management is great at playing with new ideas that at first sound really motivating but then little or nothing comes of them. This is a saga of 20 years standing. What is needed is a solid marketing campaign to sell the products they already have. Its time management got serious.
How many times now have management cried ?wolf?? What can we believe?
Note 1: There is also an ASX compliance technicality that SPPs have a limit of ?$15 000 in any consecutive 12 months period?. Can NSP actually have another SPP only 6 months after their last one?
Note 2: There is no bottom support to this SPP. At whatever price shares get sold down to in next week, the discount will be another 20%.
Juke
MEM Price at posting:
14.0¢ Sentiment: None Disclosure: Held
