Leading investment advisor MDS FINANCIAL GROUP has issued their guidance on the Allied Brands Ltd (ABQ) "Share Purchase Plan". Under this plan, most of the money is earmarked NOT for the rumoured distress-purchase of Villa & Hut, but instead they're shoring up Allied Brands quickly deteriorating cash position and providing a "mate's loan" of $750,000 at abusively favourable terms to non-performing CEO Shane Radbone.
Radbone is required to stump up not one dollar to purchase these shares, with other terms unrevealed by management.
As much of the Global Financial Crisis has been caused by public company directors and management "looting" the company to fill their own pockets, apparently Allied Brands hasn't learned the lesson of these shareholder issues. And in most cases these were public companies that justified their "looting" by claiming shareholders had seen increases in their investments. ABQ has shown no such increases, but just a slow, steady slide in share price alongside their declining cash balance.
MDS confirms Allied Brand's liquidity and company stability "poor". It also notes that it devalues the current 100 million+ shares by 17.5%. This after the company has worked hard to devalue the shares over the last two years. It's the ultimate in company greed and shareholder stupidity - get the existing suckers (sorry, INVESTORS) to stump up more money.
And franchisees have by far the largest stake in this company, a stake secured only by the fair and equitable operations of the company. Without franchisees, Allied Brands ceases to exist. And as franchisees continue to fail and ABQ either closes these shops or operates these loss-makers themselves (something they have proven time and time again they don't know how to do), the company moves closer to the brink of failure. In Brisbane? Look at the big mess the company has on its hands at New Farm!
No comments:
Post a Comment