PET secures out of court settlement in relation to BHZQ (China) receivables.

Could this be another step towards Phoslock re-commencing trading on the ASX?

Phoslock Environmental Technologies Limited (ASX:PET) today announces that it has secured a substantial settlement in relation to all outstanding receivables involving a former customer and related party in China, Beijing BHZQ Environmental Engineering Technology Co. Ltd (“BHZQ”).

Since June 2020, PET has been pursuing the payment of outstanding receivables owed by BHZQ under various contracts for the supply of products and services, including by instituting legal proceedings in arbitration tribunals and courts against BHZQ.

Full announcement here.

For those that remember, Phoslock went into a seemingly routine trading halt in September of 2020, then things spiralled from there. They later advised to the market that internal investigations requested by the Chairman and MD yielded fraudulent activity in the falsification of invoices and service contracts (wowee).

Phoslock advised the market in November last year that they are on the “pathway to relisting” and expect to be in a position by Feb 2022. Next four weeks will be interesting to see how this plays out.

As a full disclaimer, PET was one of the first companies I bought into; one of those “hot tips” from a mate - as stereotypical as it gets. I was just starting out shortly after the COVID crash and jumped in with a small parcel (fortunately). So yes, unfortunately I still hold. Given how small a size it is, and the value it will most likely become immediately upon reopening (VERY negligible), I’ll hold and see how it goes.

Fortunately, through Strawman, the SM community and thousands of hours of self-education (podcasts and decent books) I've learnt much more than to jump head first into hot-tips from mates and now can offer some more reasoned discussion when they send me messages (and rocket emojis) about mining/exploration compaies with 1 good intercept, or a biotech that has annouced it'll cure death...

Expecting this to be a negative/inverse rocket emoji when they do re-open for trade – maybe they should make a sinkhole emoji (?).