2242749 Ont Ltd. AIIFF

Elephant in the living room

[woolwich]

Rustynail and Greying raise good observations but may fall short of calling a spade a shovel.  Only one director (the Chair) is a professional engineer; the rest draw on only financial or legal backgrounds.  None of the directors have any major depth in generating sales or the measure of 'street fighting' skills required to succeed in a truly competitive environment.  Instead senior management occupies an office adding only to overheads and completely removed from virtually all of the workers.  Even worse, despite decades of financial expertise and connection available through three directors, Armtec is now being held hostage by a financing source whose real intentions are unknown to non-employee owners of the company.

Available information indicates that the directors and senior management collectively do not own more than 10% of Armtec's issued shares so the identity of the controlling shareholders is unknown to me.  Over the past year most months have seen less than 1 million shares traded and, for the most part, these have been generated by many relatively small transactions involving numerous brokers.  Unless a single buyer has been randomly purchasing shares through multiple brokers - which has left the buyer with sharply eroded value - most of the transactions are day-trader driven.  Any information on the identity of major holders would be welcome.

At the time of his appointment the current CEO stated that he needed three years to turn this enterprise around.  Those three years are now up and the ship has taken on almost enough water to sink it.  Survival for Armtec under a continuation of current conditions is almost certainly not possible and under similar circumstances responsible Boards would be engaging a new captain and crew with the utmost urgency.  How is it possible that Armtec's Board has not heard or reacted to the lifeboat siren?