A trading card sleeve company is reporting its worst year in three decades and the worst year of trading card sleeves in history.
The company is now trying to sell its business after a three-year slump that saw its stock plummet more than 25 per cent in value in the first two months of the year.
The board has been unable to find the funds to keep it going and it is facing a $5 million debt load.CEO Tony Tynan has admitted he is in financial difficulty.
“It’s really hard to keep our momentum going and we have to come to terms with it,” he said.
“We are really trying to be a bit more transparent, and let’s just say we are not at a good place in the last two years.”
The company’s chief executive, Brian Smith, says he has made “significant progress” in stabilising the company.
“What we’re finding is that there’s a lot of volatility in the stock market,” Mr Smith said.
The stock fell more than 50 per cent over the past year.
It has since rallied to about $3.5 million.
But Mr Smith says he is facing debt repayments that could push the company into administration.
“This is a company that is a bit like a rock star in Victoria,” he told the ABC.
“People love it, they love to trade cards and they like to trade in Melbourne.”
There’s a very small number of people who trade at that price.””
We’re doing really well in Victoria, we’re doing very well overseas.
“A spokesman for the Australian Securities and Investments Commission says there is no evidence of fraud.”
However, we are aware of a number of potential breaches in the way the company operates,” he says.”
These breaches could include fraudulent conduct and could also be due to the failure to disclose material material information about the trading card company to the SEC.””
If you’re an accredited investor you should not engage in trading cards,” he added.
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