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  1. I’ve just been informed via the tipline that a second complaint is now under way with the ASIC detailing fraud over $94m. Here is the contents of the complaint as supplied to me. I have withheld the source, and complaint ID from publication but I have been given them too:

    BPS Technology has issued a prospectus to raise 28 Million and list on the ASX. BPS Technology is acquiring the assets only of the Bartercard Group of Companies, leaving considerable debt behind. The minor shareholders of Bartercard have not been offered anything to acquire their shares however major shareholders were paid a considerable amount for their shares. The Prospectus is misleading as it does mention, disclose nor not take in to account the Trade debt of the Bartercard Group of Companies which in its annual report of 2012 is circa 94 Million dollars. this is a debt to the trade members that has to be paid back at some stage. investors considering investing in BPS Technology are being mislead and have not been provided the entire debts and obligations of the group. Minor shareholders of the Bartercard Group have been disadvantage and their rights have not been considered at all.

    My take is very similar to this complainant – the Prospectus is dodgy; the exercise is an asset strip, the Directors are attempting to gain personal benefit at the expense of others and by implication the IPO should not proceed. The only thing that I take issue with this complainant is the implication that the off-balance sheet liabilities are $94m [in supplementary documentation supplied to me]. This is the figure that Bartercard themselves note in their accounts however they are not a reliable source of data. The true figure will have likely ballooned out from that and is very likely to be much much more, $200m and possibly $300m or more. Nobody knows but when you work backwards from all their activities that milk deficit spending for all its worth at every corner of the business, I cannot accept $94m as the likely true measure of their debt. It’s totally, totally horrendous!

    • Hi,
      Interesting Blog. I am guessing you are aware of the company selleing thier beloved trade dollars for 20 cents in the dollar! I dont mean negotiating settlements. I am talking about activley seeking out persons to pay them cash in exchange for trade dollars at the value of 20 cents in the AUD! I have transactions for evidence

      • > I am guessing you are aware of the company selleing thier beloved trade dollars for 20 cents in the dollar!
        That’s the market valuation. The real value when you factor in the $400m est trade deficit is less than 1c in the dollar! Smoke and mirror stuff.
        > I dont mean negotiating settlements. I am talking about activley seeking out persons to pay them cash in exchange for trade dollars at the value of 20 cents in the AUD!
        They are hemorrhaging cash at the moment – a $4m overdraft recently less than a year after their IPO, USA’s got big problems failing to fire and a net loss and UK going backwards with top-heavy management!
        > I have transactions for evidence
        Send them through the tipline mate – the evidence is out there isn’t it?
        Thanks for your thoughts

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