Many of those lessons are around good corporate governance. For example, he was forced to repay part of a $50,000 pay rise he gave himself without approval from the board. Pearson is now personally trying to resurrect Alphatise after it spectacularly imploded earlier this year...
We went back to all the existing shareholders, our existing investors and we didn't get the support. We didn't get close enough. We got about half-a-million which was too far from what we needed.
It appears that insufficient due diligence was undertaken by the directors regarding the significant financial commitments associated with this lease and its impact on the cash flow.
The company lacked sufficient cash flow to pay its ongoing liabilities on their due date. This became apparent on Friday 27 February 2015 when the Company was unable to facilitate the payment of its fortnightly wages to its staff. This indicates that poor cash flow management was evident.
We were trapped. We only had the option of a backdoor listing at that point, or to significantly drop the valuations.
I will stay as CEO, no matter what, period.
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