Convertible Loan Research, page-2

@Hollycozy

Good research once again, I like your work.

I believe you are correct regarding this substantial holder also being the loan provider, even if the facility was provided under an entity rather than directly by this substantial holder.

I also note that 4,918,472 shares abstained from resolution 8 – Issue of convertible loan shares (refer to notice of meeting). This is the exact number of shares held by this substantial holder (refer to top 20 included in their annual report), which makes me believe this holder is the loan provider. Why else would he abstain from voting on this resolution? I can’t confirm but I strongly believe this is the case.

I didn’t know he was a friend of the current CEO but it all makes sense. His name appears on the register of a number of other companies the CEO was/is involved with.

They sought and received a waiver from the ASX to issue the convertible shares before December 2019. Usually these shares must be issued within 3 months of receiving shareholder approval, which would be February 2018.

This gives them plenty of time to pump the share price so that the loan provider can sell these shares above 30 cents and make a big profit. I also believe this is the reason why they are trying to maintain the SP at 30 cents.

All IMO and DYOR