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New Media Article

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    A new update was sent out by the Shareholders Action website including a new Courier Mail article.

    http://lwp.host22.com/2017/10/18/lwp-courier-mail-article/

    ANOTHER SHOCK
    ANTHONY MARX, THE COURIER-MAIL
    OCTOBER 17, 2017 8:05PM

    http://www.couriermail.com.au/busin...o/news-story/26f9a935a79c460063b5279c485e568c

    Embattled Brisbane energy outfit LWP Technologies has suffered another shock to the system, terminating its first and only deal to commercialise its fracking product.

    The loss-making minnow announced yesterday that it would no longer proceed with its joint venture with Hallmark Minerals at a manufacturing plant in India.

    The deal was unveiled in mid-2015, with LWP expecting to receive $1 million for the license of its technology and 10 per cent of gross revenues in royalties.

    But new chairman Dan Lanskey said the project was no longer financially feasible thanks to a combination of weak commodity prices, the investment needed to commission the plant and “the current financial position of LWP’’.

    As one disgusted investor noted, LWP squandered nearly $1 million on the Hallmark deal and now has nothing to show for it.

    “This is just another of a long list of slap-in-the-face items for shareholders. Terminating their only JV and the closure of the pilot plant leaves them with (virtually) no cash, no product and no way to produce any product,’’ he said.

    In a separate move revealed yesterday, Lanskey hired a Sydney law firm to review the company’s compliance with the Corporations Act, ASX listing rules and other obligations to related parties.

    That followed multiple “please explain’’ letters from the ASX about the company’s actions.

    LWP suspended its shares last month as it launched a sweeping internal review of operations and acknowledged it had less than $500,000 in cash.

    The firm reported a $7.6 million net loss in the December half year. Auditors warned once again the company is in danger of collapse following $6 million annual losses in both 2016 and 2015.


    LWP Cancellation of Only Commercial JV

    http://lwp.host22.com/2017/10/18/lwp-jv-cancelleation/

    In typical LWP fashion, yesterday’s twin announcements about terminating their business arrangements with Hallmark thus cancelling their only commercial project as well as initiating an independent legal review of the companies undertakings raises more questions than it answers.

    Recent announcements confirm that LWP have not acted in line with their continuous disclosure obligations.  The termination of their only commercial deal leaves them with no way to produce any proppants having also recently decommissioned their Clontarf pilot plant.  LWP raised funds for the Pune plant in 2015 and raised further cash in 2016 with the Lanstead funding arrangement but now find themselves with little cash and facing the prospects of a hefty ATO bill for making a erroneous R&D rebate application.

    The numerous breaches of the ASX Listing Rules and the Corporations Act have been well documented so shareholders can only hope that this is a truly independent review.  This is independent in the meaning of “free from outside control”, not independent like LWP’s Independent Test Results which were done by their own Chief Scientist.

    Although the circumstances leading to the initiation of the legal review remain a mystery, the ASX has had a number of meetings with LWP over their appalling corporate governance record and their complete disregard for the ASX Listing Rules.  This also ties in with ASIC’s new Industry funding model where regulated entities wear the cost of investigation instead of the regulator.
 
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