Companies: EPO   

Earthport once again finds itself shrouded in controversy thanks to a confidential report written by its solicitor, DLA. The report, concerning a January announcement outlining details of a £1.5m refinancing package, raises concerns that a 'false market' in the shares has been created. This is because only £875,000 of new funding had been secured at the time of the release. Earthport's management hit back, stating that January's comments 'were made on the basis of commitments received and documentation available to the company at that time'. However, it acknowledges that a £500,000 loan agreed with a Mauritian bank 'was subsequently found to be too expensive', and that £400,000 of the £1m due to be raised through loan notes is now in jeopardy. Needless to say, many investors now appear to have lost faith in the company. There is an EGM pencilled in for 4 April. One bulletin board commentator asked: 'Is it time to make a stand?' Avoid.