TTG, yes, they have broken the business model........they survived where nearly all others of their type did not!!
An emailed notice was sent out by the NZF home loans BDM advising finance and mortgage brokers that home loan lending was to be suspended while they completed due diligence with a new financial partner, this is an operational matter and they may not have been required to advise NZX, of this I am not sure! The suspension was at the request of the new investor!
NZF/Liberty own the MPM intellectual property and Mike Pero is contracted by them to use his face for 10 years. I can't see how he can go into real estate without involving the JV?
These are the comments made last week on stuff.co.nz "Pero formed a company called Mike Pero Real Estate limited in August last year and such a business might be a good fit with the mortgage broking business Pero founded in 1991.
However the possibility of adding a real estate arm to the mortgage and insurance broking business was not something Mike Pero Mortgages chief executive Shaun Riley was keen to discuss.
''All I can say is that it's something we have discussed and nothing's been finalised,'' he said.
He would not comment on rumours the new agency could be launched as early as next week."
I am inclined to take the 6% on the notes, at least I can sell down and probably get my money back over time, a large number of potentailly diluted shares is not that appealing, even though they might come right in the long term.