We were tipped about the frantic meetings, panicked looks, and shouted phone calls that have occurred this week as Allied Brands (ABQ) management, stunned that their "share offer" to existing share holders has collapsed.
It is reported that of the thousands of Allied Brands shareholders, literally only a handful have responded to the share offer - clearly people suckered once into their purchase of this company's shares are loathe to do any more of their dough. In the letter released to the Australian Stock Exchange (ASX) yesterday, Allied is now pleading with shareholders to take up more of these share. A now impossible task without "mate's money" being committed.
As evidence of the panicked state of affairs, the letter given to the ASX is addressed to "A B Sample", living on "123 Sample Street", in "Sampletown NSW". Apparently so panicked is management and staff that even simple letters aren't being checked! More embarrassment to management!
But then again, continual mistakes are commonplace at this Mickey Mouse organisation. Perhaps the reason the sum of the parts (Baskin Robins, Cookie Man, Awesome Water, Kenny's Cardiology, and now Villa & Hut) are much less than what was paid. Tens of millions in shareholder value is missing.
Allied Brands has assumed millions in debt from Villa & Hut, paid-off the founder, sold "guaranteed" shares to new part time management, and earmarked almost a $Million for the current non-performing CEO, Shane Radbone. Investors and local Gold Coast media are now concerned that without this influx of cash, Allied Brands Ltd. will quickly be seen as "Trading While Insolvent", with their primary cash producing brands in their dead season. No one buying ice cream or biscuits for Christmas in the dead of winter.
With the announcement by the ASX yesterday that another Gold Coast fraudster Eddie Groves has had his personal funds frozen by the ASIC, a chill is being felt at by the directors and management at Allied Brands Ltd.
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