WHERE IS ALL THE CASH? HOW CAN ABQ PAY THE PROMISED DIVIDEND?

The Allied Brands (ABQ) annual report evaluations are starting to come in.

The big question -

WHERE DID ALL THE CASH GO?

The "cash on hand" dropped from $4.1M to $2.7M - AFTER management announced they had raised an ADDITIONAL $1.4M under the guise of purchasing Villa & Hut.

This confirms that at the time of this additional cash-raising, the company was essentially OUT OF CASH. Was ABQ "Trading While Insolvent" prior to this?

Further analysis is underway to answer this question.

However with the company clearly continuing to bleed cash, franchisees from Cookie Man and Baskin Robbins, both dependent on company supply of product, have expressed continuing fears that stock shortages currently being experienced will grow worse as the company enters the busy season. They company is starting the financial year with much less cash than last year - a year that saw record product shortages for franchisees during the busiest trading season.

Meanwhile, the company has promised to pay another dividend from cash it doesn't have! This was a desperate attempt to smokescreen the market. Clearly with the collapse in share price the analysts have seen thru this stupidity and advised accordingly.

WITH 165 MILLION SHARES OUTSTANDING, THIS SO-CALLED DIVIDEND WILL COST THE COMPANY $819,720!

WHAT KIND OF NONSENSICAL ECONOMICS IS THIS?