As promised, I attended the AGM and took extensive notes.
1. It would appear, given that there were very few votes against any motion, that all motions would be carried, although this is yet to be confirmed.
2. Nexia's auditor attended, and Justyn Stedwell and Peter Richards were present via zoom. The meeting was run with precision and extreme professionalism by Howard Digby and Adrian Floate.
In response to questions from the floor, the following were confirmed;
a) The merger will occur in THIS quarter, with March seeing it completed, subject to shareholder approval. The hold up has been largely caused by the company's success, because with the agreements with Fiserv/Visa and Mastercard, the independent valuations had to be completely redone- the company will not proceed with anything else they have in the pipeline now until the merger is complete, as any acquisitions etc would cause another revaluation.
b) The only similar product on the market is 'Square", which does not target the same audience as CRO
c)Spenda is an integration product which is not based on a file based system like the banks and does not take several days to process like BPAY. As such, its software addresses the need for IMMEDIATE PAYMENT, and has no rivals.
d)FISERV is onboard to PROCESS payments put through Visa and Mastercard. The deal with Mastercard and Visa allows CRO such a discounted rate that they can compete directly with the banks.
d)AF couldn't specifically comment on the onboarding of Capricorn's customers without breaking ASX rules, but again stated that the merger must occur first before any future announcements.
e) He spoke about marketing to 'NODES'- ie a NODE would be, for example, wholesaler with say 800 customers. Each Customer does not have to be contacted by CRO, but their sales team was focused on value- adding to EVERY LINK IN EVERY CHAIN. AF talked about' sweeteners' at every stage of the supply chain- these sweeteners include but are not limited to, cheaper rates and immediate payments.
f) With the use of Mastercard or Visa, or an existing bank, Spenda can guarantee the payment between merchant and vendor in the same way Uber does now.
g) The eye is clearly on global development, but, and I quote ,"We don't want to grow so fast we break and we don't want to be the next TYRO." (AF)
h) They have moved from a small payment provider to a medium sized payment provider, but are now on the cusp of needing to be AUSTRACK compliant, as a large money mover.
i) Getting it right in Australia with our strict compliance laws will make breaking into the overseas market seem comparably simple.
j)They would only need to raise more capital if they needed to grow faster than their current structure allows, but are very cashed up for their current rate of growth.
AF was clearly very excited and constrained by what he could say. CRO is on a continued upward trajectory with significant growth month on month. The future looks very exciting.
Expand
(20min delay)