The founder of real estate company, McGrath (ASX:MEA) has advised that contrary to the media allegations, he has never used the company’s shares as security for a loan.
It comes as various media outlets have been reporting allegations about the founder’s investment company, Fondorru’s debt.
John McGrath told the board last night, after the market closed that no margin lending facility has ever used the company’s shares.
The McGrath shares lost about 31 per cent over the last 12 months.
Shares in McGrath (ASX:MEA) closed 2.3 per cent higher at $0.45 on Thursday,