ABQ MANAGING DIRECTOR RUNS OUT, CASHES OUT, ON LOUSY ANNUAL RESULTS

On the heels of of another failed year for Allied Brands Ltd (ABQ), managing director Peter Graham is apparently being shown the door by other management - and is cashing out at a huge loss on his way out.

After close of trading today, Graham revealed he's been selling off big.

ASX ANNOUNCEMENT

Note in this announcement the massive number of options held by Graham and his family that expire very soon - options that are totally underwater due to the company's collapse and continued huge cash burn. No one knows why these options were "awarded" by the company, but the price has never even been close. How can it, when stores continue to open, fail, and close?

With the company diluting shares even further this week, issuing another 5million at 14+ cents, the Grahams have clearly signaled that the share price can only go down from the current .155 cents, and are running for the door now.

Graham has clearly lost the support and respect of his fellow directors, who like the franchisees blame Graham, his son, and brother David for the failure of brands Baskin Robbins and CookieMan.

Note also the annual report (page 71) acknowledges that the Graham brothers owe hundreds of thousands (over $320,000) to the company for a failed defense and settlement for their actions as directors--apparently more abuse of franchisees. This legal action was not covered by the company's insurance--as the annual report notes, director's insurance does not cover acts of "bad faith". This debt was not disclosed previously by the company, nor apparently did the auditors know about the debt. The ASIC is investigating this "oversight" along with other misleading statements made by the company.

It was Peter Graham that continued to tell the market the company was "on track" to a $6million to $7.5million annual profit when just weeks later the company so spectacularly missed these numbers and continues to bleed cash on a massive scale. So short is cash that the company is no longer providing Baskins franchisees with their "Flavour of the Month". They apparently can't afford to stock these additional flavours!

The Grahams have driven this company into a ditch - for the third time. Dunkin Brands has signaled it's time for these failed businessmen to go - even as the rest of the weak management team tries desperately to stem the huge cash burn that spells doom in the next few months.