CQU 0.00% 1.5¢ commquest ltd

the rape of cqu

  1. 1,290 Posts.
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    Hello Fellow Shareholders,

    If we analyse the impact on share holders of todays press release

    Current shares on issue (approx) 121, 721, 803
    Shares to be issued to Co investor 0.75 cps 21, 480, 318
    Rights issue at 0.6cps 886, 134, 726
    Shares to coinvestor via convertable notes 1,066, 666, 667
    Total 2,096, 003, 514

    So the original investors would then own 48% of the company and control will be clearly vested in Co Investor. (This is the best case scenario)

    I think that what this tell us is that the current directors are telling us that CQU is worthless, but at the same time are expecting a FY10 revenue of $61.9m to $68.9m.

    Frankly I want to see a lot more information to support the placement to Co Investors because on the above figures I get the impression we (the current shareholders) are being raped.

    I would like to see a lot more transparency and independant reports to support the Directors recommendations and I would like to see independant analysis that assets sold to Directors of the Company are done on an arms length basis and that generous payouts of resigning Directors are sensible and are in the best interests of shareholders.

    Frankly, I think the entire current Board of Directors should be called upon for a fully transparent detailed report on the state of the Company by someone like KPMG and that if they fail to do so, that the shareholders dismiss them via a special meeting called for that purpose.
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