Ouch: someone is trying to wind up IOT’s mates at PropertyBay
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Someone is trying to wind up PropertyBay, the company that shares an office and several former board members with struggling smartwatch/selfie drone/blockchain company IOT Group (ASX:IOT).
IOT told the market on Friday morning a wind up application had been lodged with corporate cop ASIC, although in fact it was launched over two weeks ago on May 22 with the NSW Supreme Court.
A Sundip Bhundia is behind the wind up notice, and he is being represented by law firm Colin Biggers & Paisley. A hearing is scheduled for June 24 and the firm would not comment on the application. PropertyBay is trying to reach a settlement to stay proceedings.
The PropertyBay board consists of Timothy Sommers, a man who brought IOT two deals the ASX quizzed the company about in March, former IOT managing director Sean Neylon and former IOT director Ian Duffell.
The wind up notice is a problem for IOT, which signed on as a consultant to PropertyBay in December last year to advise on “internet of things opportunities in the property tourism sector”. They expected to be paid about $100,000 a month for that gig.
At the start of May, IOT said it was owed $205,691.52 by PropertyBay.
Also problematically, PropertyBay’s main project Dunk Island was put up for sale last month by owner Linc Energy founder Peter Bond for around $20m.
PropertyBay’s website, when it was still functional, showed a link to an “eco-luxury smart-island” project on Dunk Island, situated 4km off the Queensland coast.
Late last year the company forked out a non-refundable deposit to buy the island, and outlined plans for an ambitious $500 million redevelopment project.
Dunk Island has been a boondoggle for a few years after being destroyed twice over by cyclones Larry in 2006 and cyclone Yasi in 2011. Bond bought it cheaply in 2012 but an ABC new report last year showed it was still in disrepair.
IOT Group hasn’t had a good run since it launched itself at the ASX in 2016.
It initially tried and failed to sell digital TV subscriptions, then smartwatches and selfie drones, before getting into the blockchain business in April 2018.
But it’s been even worse at blockchain than it was at selling selfie drones, making exactly $3713.30 from that sector so far according to its response to the ASX, despite promising millions of dollars in revenue.
IOT Group shares have been suspended since mid-March.