Changes to the Board of NZS

IMO the proposed AGM resolutions regarding Performance Rights should be withdrawn.
If the BOD continues with the Resolutions in their present form I recommend that all Shareholders vote NO to these resolutions.

The BOD appears to acknowledge that they are lacking industry expertise

I refer to the recent report by the CEO, Andrew which states:
“NZCS holds the view that the concurrent growth and evolution of both the business and Board,
will ultimately contribute to the NZCS’s success, growth and longevity. To achieve this, a
specialised firm has been engaged to seek suitable additions to the NZCS Board, with the aim of
adding deep industry experience, international sales and distribution expertise, and proven
abilities to transform a company from a $30-50 million market capitalisation, to one of hundreds
of millions or higher. This process has commenced and is ongoing.”

Note that it specifies ADDITIONAL board members, rather than replacement.

The BOD are seeking to reward themselves with Performance Rights at the upcoming AGM.
The proposal includes a duration of FIVE years with NIL Consideration on issue.

At the current SP for NZSOA options with an exercise date of July 2022 (21 months duration) the Performance Rights would have a current market value of:
Mr Willisee (Non Executive) 13,500,000 @ $0.016 = $216,000 AUD
Ms Dale (Non Executive) 9,000,000 = $144,000 AUD
Mr Thompson (Non Executive) 9,000,000 = $144,000 AUD
Obviously options with an exercise expiry date of FIVE years from issue would attract a higher valuation than NZSOA options.

The inclusion of Mr Miccio (who is an Executive Director) with a grant of 9,000,000 Performance Rights falls into an entirely different category.
I have no issue with the granting of Performance Rights to Executives and Management.It is a sound business practice.
I note that wnen Andrew was confirmed as CEO his terms of employment included a Performance Bonus (expiring on 30 June 2021) of $50,000 NZ payable on NZCS achieving 3 consecutive positive months of cash flow.

Performance Rights (if they are to be issued) should be awarded to those executives and management staff who are identified by the
Board as key to the delivery of the Company’s long term strategy.

Cataldo Miccio Executive Director
Andrew Petti CEO
Peter Fletcher Operations and Production Manager (16 Nov 2020)
Peter Win GM Business Development
Anna-Lee Fraser Chief Sales Officer
Rob Wells Chief Financial Officer

IMO, it is premature to be awarding Performance Rights.
NZS is still in its infancy.
The BOD should be ashamed for their low-ball attempt to reward themselves without merit.
Maybe they forgot about their responsibilities to Shareholders and the real money that has been invested in NZS.

"Greed is good" - Gordon Gekko - Wall Street

Declaration:
I bought into NZS at 1.3c
I participated in the recent CR at 4.2c
I have a substantial holding of NZSOA