2021 BRN Discussion, page-5769

Hi rocket
Your question presupposes that I need my confidence boosted. I actually don't and am actually comfortable with the information flow from the company.

I will answer your questions the way in which I would answer them as a CEO of an ASX listed company in a letter to shareholders:

"Dear Shareholders
It has come to my attention that some shareholders are interested to have my comments on a number of specific questions. In writing to you to address these questions I am obliged however to adhere to the strict rules of the ASX regarding such communications and the Non Disclosure clauses in place with potential customer engagements and with those in our commercial in-confidence agreements.

Dealing with these questions then:
1/ Lou's departure, did he get his fingers burnt?
Answer: The circumstances of the former CEO's departure have been released by the Board under a price sensitive ASX announcement in accordance with the agreement between the Company and the former CEO and I refer you to that announcement.
2/ Search for new CEO
Answer: As you would be aware the person we are seeking to take up the roll of CEO is a person of significance to the future of the Company and will be a person who may or may not already hold a current senior position and as such all I am at liberty to disclose is that we are engaged in the process of finding the right person and once that person has been found and terms are agreed a price sensitive ASX announcement will be made.
3/ Search for new investor relations officer why is no IR available in meantime
Answer:The company has taken the view that the current situation should revert to that which existed prior to the appointment of the CFO to carry out these duties in addition to his normal role with the company. The Board as a result of feedback from the CFO has recognised that the duties of managing shareholder expectations have now reached a point where the addition of a person whose sole responsibilities will be to carry out this role is required and as such a search is underway for this person.
4/ Chip fabrication delays
Answer:The company is aware that there has been considerable coverage in the press world wide about the delays being experienced in the production of semiconductors and that these delays have been occasioned by changed spending habits due to the pandemic as such any delays which may currently being experienced are applicable to the whole semiconductor industry and the company is managing this situation to the best of its ability in the circumstances.
5/ IP license negotiations and NDA numbers
Answer:Unfortunately due to the confidentiality of these matters I am unable to make any specific comment other than to say how pleased the company was with being able to make its announcement on the 23 December, 2020 of having entered its first unconditional agreement for the sale of its revolutionary AKIDA technology IP.
6/ Income and expenditure. while in a period of cost cutting , on what did they spend $26mil ?
Answer:You are referred to the Annual Report where you will find a full explanation of the companies finances but suffice to say this figure is not correct. The actual expenditure was $11 million approximately.
7/ Less Company diluting finance availability
Answer: The company believes that the agreement reached with LDA Capital has proven to be an excellent decision by the Board and one which by reason of the companies continued growth has maximised the opportunity to secure the company's financial future without significant dilution of shareholder value.
8/ Development progress of AKD2 and 3
Answer: The company is pleased with the progress however is currently focused at the Board level with pursuing the current commercial engagements relating to AKD1000 and the sale of its IP.
9/ Why is it OK to release a media blitz but not a market update announcement
Answer: The company is unfortunately subject to the strict rules of the ASX imposed due to the number of fraudulent and false claims made by some others with regards to Covid-19 products and developments. As such the company has taken a conservative approach in a responsible fashion with respect to how it deals with this issue and to date this approach has been confirmed by the press releases which it has made not being called under question by the ASX as releases which should have been the subject of an announcement via the ASX. There has been very recently censure of an ASX listed company as a release by a Director of that company over the weekend of information in a magazine article in the the United States of America was when brought to the attention of the ASX was deemedto be a matter which should have been first released via the ASX.
10 How is the health of our company?
I would refer you to the Annual Report and the last 4C and suggest that the company and Board remain confident of the matters and circumstances set forth therein and look forward to the upcoming 4C at the end of this month.

I thank you for your continued loyalty and look forward to the upcoming Annual General Meeting.
Kind regards"

This is my speculation on how your questions would be answered but it is also my opinion that this is how they should be answered as well. In my opinion the fact that I as a shareholder wants to know something does not mean I should know. Shareholders do not, sorry to say, run the company, the Board does.

You either trust the Board to be running the company properly or you attend the Annual General Meeting of shareholders and ask questions in an attempt to satisfy yourself that the Board can be trusted. If after going through this process you are not confident that you can trust the Board then you sell your shares and go to another company where you do trust the Board.

I will ask you this question: Do you believe that the company is engaged in commercial in confidence agreements with others? If your answer is yes? Then I ask you this question: Why should the company breach confidentiality and tell shareholders the details of these agreements and put these agreements at risk and also cause others who might be thinking about engaging to fear that their confidentiality will not be respected?

My opinion only DYOR.
FF.


AKIDA Ballista