Thanks for that summary Tumby, AS DL said they are operating in a somewhat "secret squirral" space even more so now that they have essentially abandoned effort in other sectors and channelling all into defence. One of their big challenges is how they communicate with shareholders to give them confidence that the business is progessing. Waiting for quarterlies and AGM's with total in-between silence doesn't cut it. That said, it was a good meeting that provided a lot of clarity. They seemed confident that something big was around the corner.
It is interesting that they dragged in Miles to the meeting. I know that DL does monitor HC and onviously a reaction to the discourse on the resolutions. I applaude him for attempting to address it by bringing in the non-executive Board member.. Miles' argument that they they calculated options conversion price was the same as in past years was a weak defensive argument.. In the end he needs to step back, look at the resolution and ask "Does this incentivise and reward exceptional performance?". Obviously it doesn't as it's simply a gift at shareholders expense. Similar for Resolution 4. Rewards based on eps also make s alot of sense. Rewarding for simply getting to cash-flow positive which from the current position should be part of his normal job is just wrong. the goal should be for at least cashg flow positive by $0.5M for high performance warranting reward.
I stil have some discomfiort at putting AR9 eggs all in the one basket of defence. I think they have raised the risk profile of AR9 however it just may pay off.
AR9 Price at posting:
10.0¢ Sentiment: Hold Disclosure: Held
