Verdicorp good buy for MSI, page-101

Last October, I wrote I smelled a rat. Now some a making lots of money. I wrote the following which pooled together all their announcement and it was modded. No reason except "other" and that sounded fishy.

The Super Link Loan announcement on buying Verdicorp ORC comes at a good time (check it out). But I sense another non arm's length transaction has been completed. That said the 5.5c share price is the biggest break out in more than 10years (mostly below $0.01c in that time) and sh will get an reward for 10+ years of parience.

Unfortunately the conditions to that loan as arm's length terms, namely for Super Link with option to buy the Verdicorp assets (see below) is not arm's length. It's links the Director's private interests to a listed company and I see that we have another Wellard (WLD).
Note: Super Link is owned by interests associated with MSI's major shareholders (S W Yan and Stephen Leung, both of whom are also Directors of MSI - see below).

Out of the article:
"... Under the Super Link Loan, MSI has agreed to borrow US$1,800,000 from Super Link to enable it to complete the acquisition of the Verdicorp assets. The Loan is interest bearing at 5.00% per annum, is on commercial and arm's length terms, and will be secured by MSI granting security to Super Link of its interests in the assets to be acquired under Verdicorp Acquisition.and then,
"...The Super Link Loan is conditional on MSI granting Super Link an option to buy the Verdicorp assets from MSI for US$1,800,000 (Super Link Option). The grant of the Super Link Option was necessary in order to obtain Super Link's agreement to provide the Super Link Loan. If Super Link exercises the Super Link Option, acquisition by Super Link of the Verdicorp assets will be subject to MSI shareholder approval."

The Director's links to China drives funding:
..."The Super Link Loan is further conditional on MSI entering into a licence agreement with Super Link providing Super Link with the right to manufacture and distribute products which incorporate Organic Rankine Cycle (ORC) technologies in the territory that comprises the People’s Republic of China (including Hong Kong, Macau and Taiwan)."

Then it all goes down to sh to vote on the option. With easy access to chinese friends in the money I'm sure the top 20 would easily be obtained from family members. MSI sh will lose the technology.

I am so disappointed in ASX companies that are like this.

Background = in 2011 this was announced:
As noted in Multistack’s recent reports, the Board has been reviewing the Company’s operations, particularly in the People’s Republic of China, and this agreement for the sale of the Company’s main undertaking has been determined by the Board to represent an opportunity to exit a business in decline on favourable terms, to re-assess the Company’s future activities, and to commence a search for potential acquisition opportunities. The business of Multistack, after the sale and pending the outcome of the search phase, is described below.

Multistack International Limited (ASX:MSI) is pleased to announce that it has entered into a Heads of Agreement, subject to the approval of shareholders, for the sale of its manufacturing air conditioning business and related properties in the People’s Republic of China and Hong Kong. The sale will be effected via the sale of 100% of the issued shares (Shares) in its subsidiary Super Link Australia Limited (Super Link) and Super Link’s subsidiaries, together with a licence to use MSI’s intellectual property in trade marks and patents for air conditioning equipment.

Directors

• Mr Allan H.W. Yu
  Chairman, Non Exec. Director
• Mr Stephen Leung Yin
  CEO, Director
• Ms Y N Chan
  Director
• Mr Siu W Yan
  Executive Director
• Mr Terence Chu
  Non Exec. Director
  
  and

• Ms Yan Wong
  Company Secretary

Background = in 1999 this was announced
To give an idea on this list consider that when Sir Peter Derham retired in 1999 they were in place. What does this industrial company's ASX listing mean when there are some of them (Mr Stephen Leung Yin CEO, Director) are running the Super link companies and MSI has done nothing in 20 years!

Sir Peter Derham has retired as Chairman of Directors of Multistack

International Limited as of 21 August 1999, his 74th birthday. His

retirement had been foreshadowed during the Annual General Meeting

held in May 1999.

Sir Peter has been Chairman of Multistack since it became a public

company in December 1992, and had made a formidable contribution to

the Company since then.

Sir Peter is succeeded as chairman by Mr Yan Siu Wai, one of

Multistack's two controlling shareholders. Mr Yan is based in Hong

Kong and is directly responsible for the core China operations on

which the group has refused in recent years.

Chairman Yan, Group CEO Stephen Leung and all their fellow directors

thank Sir Peter for his tireless efforts on behalf of all Multistack

shareholders and wish him and Lady Derham a long and happy

retirement.