Zhu Minshen re-assigns 70% of Top Education Group's IPO proceeds for "Intelligent Education" and working capital: Would NSW LPAB accept this type of financial management from any other Australian law school? Meanwhile Top's share price has not recovered from spectacular crash,but NSW LPAB Chairman Tom Bathurst seems unconcerned

by Ganesh Sahathevan

                               Ambassador Cheng Jingye Pays an Official Visit to the State of                                                            New South Wales (2016/08/16)



Zhu Minshen and his Top Education Group Ltd informed the HKEX on 27 February 2020 of a  change in use of 70% of Top Education's IPO proceeds:


The actual net proceeds raised from the Global Offering, including the Over-allotment option and after deducting underwriting fees and commissions and other expenses relating to the Listing, were approximately HK$171.7 million (the “Net Proceeds”). As at the date of this announcement, the Group had utilised approximately HK$51.4 million of the Net Proceeds, representing approximately 29.9% of the Net Proceeds.


As at the date of this announcement, the unutilised Net Proceeds amounted to approximately HK$120.3 million (“Unutilised Net Proceeds”). After due and careful consideration of the current business environment and development needs of the Group (in particular, the current business appetite and the combined economic and health circumstances in the PRC), the Board has resolved to change the use of the Unutilised Net Proceeds by reallocating a certain portion of these to the new business initiatives of establishing a virtual student experience centre and developing “Intelligent Education”, and the remainder towards general working capital.....


Utilising  70% of IPO proceeds for purposes other than that stated in the prospectus would be cause of great concern to investors and regulators in any jurisdiction; doing so when market capitalisation collapses to a third of what it was after listing would normally be cause for investigation by regulators. That however is not the case with the NSW Legal Profession Admission Board and its Chairman , The Chief Justice Of NSW Thomas "Tom" Bathurst QC, who was once one of Australia's leading commercial silks.
Zhu's Top Group IPO relied heavily on the "one and only" license to issue law degrees in Australia  granted a company that is not a university. That license was granted by
Bathurst and his NSW LPAB , who have subsequently in 2019 renewed that license.

The NSW LPAB and the Chief Justice have refused to answer all and any questions about their dealings with Zhu Minshen, and have in fact attempted to characterise  queries from this writer as a form of threat, intimidation and harassment.

TO BE READ WITH



Zhu Minshen's Top Group share prices continues to flounder despite TEQSA and the NSW LPAB (chaired by NSW Chief Justice Tom Bathurst) confidence : Dan Tehan must intervene to protect students, and investigate TEQSA & NSW LPAB's approvals for Australia's first private ,non-university law school

NSW Chief Justice Tom Bathurst will soon admit to legal practise Zhu Minshen's law graduates: Bathurst met with China Ambassador Cheng Jingye in 2016 & must explain what was discussed; Cheng's threat to harm the Australian economy demands that Bathurst provide complete details of dealings with Cheng,and Zhu.