Biotech Capital (BTC.AX) is yet another listed investment scam with book assets valued entirely according to the "opinions" of the operators. In its 30 October net tangible asset disclosure, BTC fraudulently claimed an NTA of $0.0416 based on director opinions, despite its auditor refusing to sign off on this entirely imaginary valuation in the annual report. In the November 30 NTA disclosure, BTC then announced a 56% downward revaluation of NTA to $0.0181, with its only remaining investment slashed to a third of its previously carried value. Any investor that based a purchasing decision on what was a blatantly fraudulent October NTA disclosure is simply out of luck, and shouldn't have expected such petty details as fund asset disclosures to be regulated in any way by ASIC. BTC currently has a "market" price of $0.025, according to ASIC due to an entirely inexplicable magical market mystery.
BTC now has book assets of $1.4m, with incumbent management extracting around $0.4m a year in cash from the remains of the failed company, obscured through deceptive accounting. The directors extract this $400K because they have control and can do so. BTC claims to be in wind-down and would thus appear to be approaching the end of the line. However, it is a very safe bet to assume the criminal operators of this scheme will miraculously find a great new opportunity for issuing shares to granny investors instead of closing up shop.
Just as BTC carried its investment in unlisted Sensear at a deliberately inflated value, so fund managers continue to carry BTC at values they well know are inflated. This is securities fraud, with inflated assets laundered through a chain of holdings. Select Asset Management currently holds 23% of BTC through a melange of funds, and carries its stake at an inflated "market" price, despite being well aware it could not actually sell its holding at that price.
In October, Select Asset Management claimed to have sold 3.5m shares of BTC for $734,469, for a sale price of $0.209, ten times the price that BTC traded on the ASX.
This is either a typo that no one noticed because ASX disclosures are in effect unregulated, or another magical market mystery.