The Australian Stock Exchange has contacted directors of Allied Brands Ltd (ABQ) and CEO Shane Radbone about the excessive share dilution that they along with other Australian companies have been engaged in over the last year.
Allied has issued almost 50% more shares with little growth in the company. Many of these shares have been used for operating funds due to the cash burn by the company, as well as director and management perks including below market loans.
THE 2008 ANNUAL REPORT SHOWED 92million shares issued. As of today, Allied Brands has issued 100MILLION SHARES since then, totaling now over 192million shares! AND borrowed almost $5million in highcost venture capital money from America. What have they done with all of this money?????? WHERE HAS ALL OF THIS ALMOST $25millon gone?
The shares in Allied Brands continue to decline - shares are now below .14 cents despite a desperate PR campaign with Gold Coast mates.
Clearly the ASX announcement is targeted at companies like Allied Brands Ltd., who have engaged in massive share dilution to keep the company afloat.
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