Really no surprises (a five o'clock SENS...), but after the AGM where the CEO categorically stated Elite has been cleaned up and no further write-offs was envisaged one can only wonder how deep the rot is.
With SARS the same from the AGM any day now, we can expect more bad news. Investing in startups is not sexy...in any case still pie in the sky.
Can they expedite their vision of becoming an 'investment holding company'; definitely not. They don't have cash to invest and no one in his right mind will take shares as part of a purchase consideration and they do not have adequate management in place.
Their present business model is doing their passion for free; parties, high fives, workshops, training etc. Nothing to create value for shareholders. They have been treating their shareholders like dirt.
I see a delisting or even worse a liquidation coming up.
The CEO took over as Chairman of Elite mid last year. Previously he was a non-executive Director appointed by a major shareholder who is also an investor in an Elite convertible Bond - the SPV. He also masterminded the loan that seems to be the core of the present Elite problems. (all in previous SENS announcements)
What is this share worth? I previously said I think 4 cents is generous, now maybe 2 cents per share? No revenue, no assets, no management that you can trust...... just nothing.
What does this say for corporate advisors and auditors?