reasons for no announcement

As we all no, there has been no announcement in relation to the business prospects, sales, marketing or trial site for nearly four months. I have made several enquires to management by email and phone and although there has been indications that a suitable announcement is to be made to break the now prolonged silence, there is still no news.

The reasons for the continued silence are known only to management who fail to inform shareholders and the market in general.

So what could possibly be the reason(s) behind their apparent determined want to maintain silence?

1. Nothing has been done so nothing to report.

Highly unlikely. From all accounts there has been considerable work done in the commercialising of the business (whatever that means) and creating a solid sales chain (?). Nice to hear more about that! Perhaps a JV or MOU with a company like Aurecon wtaht has a global network and the wherewithal to work with ERJ in both sales, marketing and commissioning of Powerboxes. I really believe ERJ needs solid working partners with a depth of experience and contacts, to help make this business move forward.

2. They dont want to flood the market with ramp up announcements.

Fair enough but to have NO announcements over this extended period of time it is having the reverse affect. The growing lack of confidence in the business product (Powerbox) opportunities for sales and the managements unwillingness to share information with the market is generating negativity and uncertainty.

3. Waiting for a truly news worthy event to happen.

For me, news worthy is knowing what the marketing / business plan is now, since the goal posts have been taken out of the ground and we are playing a new game with new rules. This new news would have nothing to do with sales of product, government grants, joint ventures, acquisitions, mergers or the such. The news I want could have come from management literally months ago!

4. Opcon are pulling the strings and dictating moves.

It would be pretty silly for this to be the case given the relatively high % of Swedish shareholder in ERJ. Maybe there is a want to have a greater involvement with other Opcon products and services to give ERJ a broader marketing / sales base and the sorting of this deal is yet to be finalized. (pure speculation).

5. It is not a good time in the market local & globally.

So what! That could be no excuse. Even with a bad news announcement, the relative drop in value from 23c to 4c over 6 months would be hard to match anywhere, globally!

6. The Powerbox installed (?) at Henderson does not come up to expectations.

This may well be the case. At this stage we have had no word on the actual commissioning of the Powerbox so speculation on its serviceability is exactly that! pure speculation! Regardless, an update on this is well and truly overdue, be it good, bad or indifferent.

7. The Powerbox is not yet connected and is suffering unforeseen major technical and / or regulatory issues.

Yes, I guess this would be a reasonable excuse for the protracted silence as management struggles to come to grips with a rapidly yellowing lemon. However, still no excuse for not communicating this to the market, especially as it is hardly going to affect an already trashed share price!

8. Management has ulterior motives to have a continued lowering of the share price.

Perhaps, but to what end? Management is not buying (or selling) shares at market and if they are, they are not informing the market as they should. Maybe they have other interested parties who they are considering and want to give them the option to buy at low prices prior to any positive announcement. Possible, but highly unlikely, given the legal ramifications and market repercussions.

9. Happy to sit on their pile of cash at bank and draw wages for a while.

Possible, but stupid, given the opportunity to also maximize their return with a higher share price. The share price clearly wont improve without several extremely positive reports involving Powerbox 100% operation and a contract / sale or two with major companies.

10. Management cant agree on the substance and wording of the (proposed) announcement.

If this IS the case, we are all in dire straits. I cannot believe for one moment that management with proven management skills, are totally devoid of communication skills, especially amongst themselves. Modern technology provides more than ample opportunity. This is simply not a valid excuse IMO. If it were. we are all done for!

Regardless of the reasons, I can find no logical excuse for the continued code of silence from ERJ management. Shareholders have a right to know what is going on in a company in which they have a financial interest. It is simply not good enough to ignore our (shareholders) rights.

To say I am disappointed with the continued silence, is an understatement.