Huffing and puffing on the chatline will serve no benefit, I don't think.... in getting the company to better communicate and improve promotion. (Although I believe the previous CEO did monitor some postings)
I think there are past, deep operational mistakes.....with this company, that we are all paying the price for now.
Best approach may be to write directly to the company - please do so and contribute in meaningful way to improve things......well maybe/ hopefully. (maybe not also, based on my experience)
I have often referred to my written discussions with the company. It is not the decent and right then to do, to present the replies received, but if you are interested, for the FIRST time - here is a copy of just one of my letters from 2020.
The SP at the time was about 40 cents. Remember since then we had that Memorial Sloan human data with all patients experiencing complete or partial response, with paxalisib and radiation. Plus much more.
Three years on - sadly much of the content of the letter has served only to prognosticate, what has happened here.
_______________________________________________
CALL FOR CHAIRMAN TO RESIGN april 12, 2020
I seek to present to the Board of Directors of Kazia Therapeutics, and indeed to the Chairman himself, compelling reason for his resignation from the Company. You are aware of the process, whereby shareholder action can initiate the removal of the Directors/Chairman. In the first instance, for the
betterment of the Company and its investors, the Chairman is asked to voluntarily exit his role, or at least nominate a future time frame for departure.
Should such a decision not be made, or non receipt of a decision one way or the other, a specific approach will be made to the major shareholders to garner the appropriate percentage of votes, to call a special meeting, and initiate the removal of the Chairman. This is obviously a very serious matter. Accordingly, specific reasons are offered here, as to why it is considered the Chairman has not carried out his role, in a manner to best serve shareholders. Much shareholder disappointment follows the way the recent fund
raisings were conducted. As such, the company finds itself in a weakened position and more vulnerable to shareholder actions.
Why go to a fund raising, on two recent occasions - prior to investors being allowed to react to positive news, is one of the core concerns here.
A market cap of only $30m, (prior to the raising) in itself, dramatically highlights underlying issues with the company. Additionally, some of the recent dialogue attributed to the Chairman in company releases, is a considered a supercilious slap in the face to shareholders.
This correspondence serves to request written advice, as to whether the Chairman will resign. Dependant on that decision, the matter may or may not go forward. If no advice whatsoever is received, within a
short period of time, the content of this letter will mostly serve as a basis for approach to the top 10 shareholders. Further distribution of the letter, is taking place, but may in future include the
financial press (To serve only to highlight the unnecessary pain and
hurt caused to investors here. )
Ideally at small caps like Kazia Therapeutics, we would find a tight high functioning work arrangement between the Board and CEO. Generally members should be allowed to challenge each other and engage directly with each other on critical matters. So badly has conventional wisdom processes not be followed in recent times at this Company - doubt exists as to how well this arrangement currently works.
Furthermore, It is considered unlikely that all members of the Board and CEO, would collectively and willingly make such poor recent decisions. In this regard, recent statements from Chairman via the ASX, deserve scrutiny. Chairman ASX release dated "It is testament to the Company's growing credibility and prospects that this round has been performed at a premium to our last round, and without the need for warrants, convertible notes, or similar arrangements, and was oversubscribed. The proceeds of the placement will allow us to complete the ongoing phase I clinical study of Cantrixil ....
" a/ The fund raising in Nov at 40 cents was close to 7 year share price lows. (despite world stock markets, at record highs, at that time).
Previously the raising was..... Where is there testament to the Company's growing credibility. Now a further raising round at 40 cents.
b/ Given company fundaments, why would the Chairman make reference to warrants and convertible notes ? Its like the captain of the footy side telling his players " We may lose today" - What sort of a belief does the Chairman actually have in the company ?
c/
These sort of comments from the Chairman has crystallised the belief, that collective Board/ CEO wisdom is not to the fore at KZA. How could it be ?
Most smaller companies face this issue of funding. With regard to Kazia, we have circumstances here, whereby the process of its recent fundraising is exactly contrary to standard practice. It could not
have been more poorly handled. Existing investors deserve the right to have positive market reaction to news, prior to the issue of more
shares.
The process adopted for two recent capital raisings, franks the belief that all people that comprise all of the Board and CEO, could not universally and willingly agree to a such poor judgement. The breakdown, or reason for good decision making is likely to have been identified here. It is simply standard practice to let the market react to company news, prior to a fundraising. There is no debate on the logic of this approach, adopted by all other ASX companies, at all times in similar circumstances.
Forever and a day now, investors will associate forthcoming announcements with another capital raise. The departure of the current Chairman however, will go a long way to removing this overhang.
The perception and faith in the company, because of much hard work, particularly by the CEO and his direct team, has been undone. The reason why, and a likely potential solution has been detailed above.
It gives no joy to draft such a letter, however a change needs to be made. Ideally it should not take this letter, or the proposed future actions of shareholders, for other senior members of the company to
draw a similar honest conclusion.
Success in the past, does not mean current actions are beyond scrutiny. Since Mr Ross joined the board in July 2015, the share price has fallen in dramatic fashion, despite the acquisition of GDC 0084
and Cantrixil progress. The issue thought is deeper - it is just poor methodology, treating shareholders if we should be grateful for the 40 cent SP, an outdated conservative approach, indicative of somebody who
has been doing this work for too long.
The company has not been able to leverage off its market cap, to more comprehensively develop Cantrixil - thus to help cancer effected people. This is an issue as an investor of the company, which pains me
greatly. Some will choose to question much of the content of my letter, but how in honest, good conscious could you not agree with this particular statement ?
KZA Price at posting:
17.0¢ Sentiment: Buy Disclosure: Held
