Explanation for Directors Selling

Hey everyone,

So, I emailed Toby Chandler and asked whether he could give us all some insight into the underlying reasons why he sold a SMALL proportion of his shares.

Firstly, he replied ... which I see as a further re-enforcement of the quality of management at SMN.

Secondly, this was his reply:

...

"Hi Jack

Essentially every primary reason for selling shares has nothing to do directly with the Company. There are personal financial reasons, portfolio attribution/risk-adjustment/variance reasons, there are macro-fundamental reasons which are not specific or idiosyncratic to the Company.

It also stems down to basic portfolio theory and risk management, as well as capital allocation optimization across multiple investments - not just SMN.

Also - in layman's terms, owning 6mm shares at 5-10c is a very different risk profile event to owning 6mm shares at $2-3.00.

Operationally - we are very comfortable with the present status of the Company.

Hope this helps

Cheers"

...

My concerns have definitely been put to bed by his reply. It seems to be that he and his fellow director were purely selling for his aforementioned reasons above - we (including myself) have all been reading far to much into it.

Let SMN do what it does best ... outperform and patiently wait for some news before the end of this year.

Onwards and Upwards!