Annual Report Error - Galderma Announcement, page-2

Management failed to provide price sensitive information in 2015 on several occasions. The fact that guidance was not amended means that Frank Wilson and the board at the time knew of contract termination (they may of tried to re-negotiate), however, should of disclosed it to the market.

Despite the current CEO/board not having made any significant progress, I do not support the special resolution, as they are over-promising as per usual and have under-delivered in the past.

"Quintis management past and present appears to have been caught out twice in three months with a failure to disclose material price sensitive information to shareholders and the ASX. It is extraordinary," said Ben McGarry of Totus Capital, who also holds a short position in the stock.

Quintis has not amended its profit guidance for 2016-17 because it had not factored any Galderma sales into its expectations, and its contract with the Swiss group did not specify any fixed volume. The company is predicting 2016-17 sandalwood product sales in the range of $45 million to $55 million for the full financial year, up from $29.9 million, it said at its half-year results in February and reiterated in March. Also, "cash EBITDA" will increase by at least 25 per cent on 2015-16, it has stated.

Santalis is geographically separate from Quintis, being based in San Antonio, Texas, and it was Santalis that licensed to Galderma. Although Quintis is the full owner of the business having increased its stake from 50 per cent in 2015, it is run with a degree of independence and the subsidiary has been previously touted as a possible spin-off in its own right."