Quote:
REPORTING UPDATE
Allied Farmers Ltd (ALF) advises that it is in the process of completing its 2011 year end unaudited financial statements. These will be released on 29 August 2011. This process includes the receipt and review by the Board of independent valuations of the remaining loan and property assets acquired from Hanover Finance and United Finance in December 2009 (the “Acquisition”).
ALF is yet to receive all of the valuations, and nor has it made an assessment of the overall impact of these adjustment and some other positive adjustments. Accordingly, whilst it is likely that these valuations will result in further impairments of these assets, at this point in time ALF is not in a position to draw any conclusions as to the overall extent of the impact of these valuations.
The audit of the financial statements will be completed during the month of September, with final reporting due by 28 September 2011. Once the audited accounts are available, ALF will be able to calculate and announce the extent to which the Bonus Shares issued to those ALF shareholders immediately prior to the Acquisition will be converted into ordinary shares. Given the likely extent of the impairment of the acquired loans and property assets since Acquisition, the calculation is expected to result in a significant number of new shares being issued to those shareholders.
When that conversion calculation is completed, ALF will be able to calculate and announce (at the same time) the number of additional shares required to be issued to institutional and professional investors who participated in the share placement on 3 August 2010. Again, this is likely to result in a significant number of new shares being issued to these institutional and professional investors.
This will be interesting... isn't it the closer the Hanover assets get to having been worth $0, the closer to infinite the number of ALF shares issued to the bonus share holders? Could see this turn into a scrap over the accounting. Wonder who holds most of the bonus shares? I think GPG sold out before allocation? Alloway?