Media Update, page-740

Announcing strategically important, but immaterial transactions on the ASX is a way of management trying to manage investors expectations that they are making some progress in the background, but not giants steps just yet.

In my view today's US Nirobox media release confirms a shift in what management want to release on the ASX going forward.. previously the new AU distributor may have made its way on the ASX, and also this sale of Nirobox in the US would have made it onto the ASX.

I suspect management will only want material transactions to be announced on the ASX going forward.

This is a sign of a maturing and more confident management who no longer feel the need to waste time putting together ASX releases for these type of transactions. A media release is a quick and easy way to update shareholders and doesn't crowd the news flow. This ensures that any news announced is taken seriously by the investor community ... if you flood the newsflow with rubbish, people will just stop following.

Another point I wanted to raise is that on the investor call this week, Henry said that the company is funded to profitability. Whilst this was said at the time of the merger, and subsequently shown to not be true ... I personally believe this is a very very important statement given where we are today.

In mid 2017 when management first floated out this line ... management was probably not aware of what was ahead of him ... over optimistic or ignorant.. either way, they were wrong.

Fast forward to today, and they have had the best part of two years on the front line and know exactly what challenges they face and what their pipeline looks like ... and with sustainable profitability less than 6 months away ... they have come out and said they are funded to profitability.

For him to make that statement this week tells me plenty. He wouldn't be making that statement knowing that it fell flat on its face last year ... to say this again so close to their Q4 target, he unnecessarily stuck his neck out ... and you wouldn't do that unless you were extremely confident you were going to achieve your stated objective.