Ann: 5GN Half Year Results Presentation, page-21

A bit late to the party here, but I thought I’d share my experience since the highlighted since the sentence you highlighted “The 5GN business is expected to generate pro forma revenue of $45M in FY24 with proforma run-rate net profit of greater than $5M before acquisitions.” caught my eye when this document was released.

Soon after I contacted their IR to ask them where I could find an explanation of why remainco was now expected to be profitable, when those same divisions were not profitable previously. I never got a response, and promptly forgot I’d ever even thought about this stock. Of course they’re under no obligation to respond to me, especially since I was writing to IR without even being a shareholder.

However, I do wonder if anyone can make a reasonable speculation as to the following question…what was the point of management temporarily pumping the share price with this misleading disclosure, thus causing it crash hard once the truth was revealed? The answer suggested by some here seems to be “Pump up price, exercise options, use buyback to offload them“ Indeed many options were exercised by management, though it seems none of those shares have been sold?. And now aren’t almost all the options management exercised now underwater, even if we take into account the 2c dividend they harvested by exercising them? Am I missing something there?

It seems the answer was probably also not “release a misleading disclosure to help their mates at Boutique Capital make a nice exit”, since Boutique Capital’s exit wasn’t very well-timed with the misleading disclosure. Although Boutique Capital did seem to work out about what was going on before the average shareholder and sold at a big profit, they still took a long while to sell after the misleading disclosure was released, missing the most elevated prices.