My advice: DO NOT INVEST.
Having received plentiful feedback following my previous posts on the Bartercard IPO, and the recent rejection of my complaint to the ASX on a technicality, I now issue a public warning to potential investors. I believe that the Bartercard IPO is a deliberately misleading act designed to asset strip from Bartercard Members (past and present); minor shareholders and the taxman to the benefit of [primarily] three Directors.
The BPS Technology Prospectus:
- contains deliberately misleading information
- contains factually incorrect information that is material to the IPO
- does not disclose all the necessary information to enable a fair assessment of the projections.
Bartercard operations have been in steady decline for at least 5 years, with reduced sales, increased debt, reduced profit, reduced memberships, low staff retention and shrinking global coverage. The company is in decline by any conceivable measurable factor.
Bartercard in none of its various iterations has paid annual dividends to current shareholders for years.
Bartercard has by its own admission, “creative ways” to deal with debt. They conceal their trade debt (debt to their members), known to be well in excess of $100m – simply not revealed in their prospectus.
The Basis for their IPO (According to CEO Trevor Dietz) is a conditional agreement from IRTA (The International Reciprocal Trade Association) to promote their solution exclusively. This agreement runs counter to the purposes of the Association, was established outside of the bylaws of the Association, was secured with major deception at IRTA Executive and Board level, is highly contentious and is actually in serious doubt.
Business restructuring was hurriedly stictched together in a crisis mode and is fundamentally flawed; the basis of their projections contain serious flaws.
There are no documents available to validate the claims in the Prospectus – no copy of the Agreement with IRTA available; no copy of the Sale & Purchase Agreements with all associated Bartercard entities; no copies of the intercompany agreements between associated parties.
I believe that the IPO/sale is a blatant asset strip and attempt to cash-out by the Directors of a failing company.
Disclaimer: The above analysis has come from my own research and personal knowledge of the company and its trading performance for two decades. It includes information received from informants on my TIPLINE in August 2014. I stand behind every word and I invite bartercard and BPS Technology to clarify any matter with my Right of Reply or to sue me. I believe that the reason that no representative of Bartercard, or BPS Technology including their lawyers has contacted me to address or counter any my claims by way of my blogging for the last two weeks is that they can’t for they will not want disclosure of critical and damning imformation.
MY ADVICE: DO NOT INVEST!