RReflections on AGM presentation and Q&A

As with some others who have already commented on the other thread on the AGM Presentation, I attended this afternoon. I think there were some 70 people in the room, and the questions and answers were in almost each case thought and relevant.

Given the market action this afternoon, I suspect some were expecting news of some new deal or other, and their disappointment translated into immediate action. Some of those selling may have acted differently had they had the opportunity to attend, because it seems to me that some points on the slides have been quite misunderstood. One such misunderstanding was about "placement"; this was discussed in the context of any potential cash flow accretive strategic acquisition. It could e funded by scrip, but may well need cash as well; Mark Bouris stated very clearly that were a target acquisition a U.S. Company, it would be a relatively easy task to raise venture capital within the US. In such an event, we could see some dilution, but in a cash flow accretive case, together with a footprint in the US, I think it would be well worth it, to hasten the cash flow and push into the market far more vigorously and quickly. There was absolutely no discussion about a CR.

The 10% placement resolution is in addition to the 15% discretion that a Board may exercise. The 15% is standard, and the ASX permits small companies to request shareholder approval in advance for an additional 10%. I gather most small companies do take up this option. The approval expires at the end of 12 months. There was no indication that anything other than having this "up their sleeve" was in the minds of the Board or management.

BBI: As we know, Phases 1-3 requirements ere fully met. During the project, Anteo has made further advances; of particular relevance is the work on amplification. This can permit far greater sensitivity, and also going beyond the current visual assessment of results by colour, to actual quantification (and of course automated capture of results). So is it surprising that BBI has rearranged its goal posts? Phase 4 is about sensitivity and scale up; Phase 5 is about commercialisation. GC etc will be meeting with BBI and POC1 this week.

More later.