Ann: Change in substantial holding, page-53

Great post.
Agree that the recent accumulation of shares by GG and SI to reach a combined 25% ownership appears to be a deliberate and strategic move. This level of control often signals specific intentions, and there could be a few motivations behind it

1. Blocking a Scheme of Arrangement (SOA)

Col69, As you rightly suggest Owning 25% of the company gives GG and SI the ability to block a Scheme of Arrangement (SOA), which requires 75% shareholder approval. This would allow them to veto any proposals they oppose, such as a hostile takeover, merger, or significant restructuring. Similar tactics have been used by investors in the past to protect their interests or prevent unfavorable changes to a company’s direction.

2. Strengthening Influence

Reaching this threshold also consolidates their influence over the company. With 25% ownership, GG and SI hold significant sway over board decisions and strategic planning. This level of control ensures they can steer the company in a direction that aligns with their goals, whether that’s maintaining the current strategy, introducing changes, or protecting their investment. A good example of this is Warren Buffett’s influence at Berkshire Hathaway.

3. Positioning for Growth

With FDA approval for Remestemcel-L potentially only days away the company’s valuation should increase significantly. GG and SI might also be positioning themselves to maximize their returns ahead of this milestone. This kind of strategic accumulation is common in industries like biotech, where major approvals often trigger substantial gains. Investors often build their positions ahead of key events like this to ensure they benefit fully from the upside.

4. Preventing Hostile Takeovers

A combined 25% stake also acts as a natural deterrent to hostile takeover attempts. Any bidder would face a significant hurdle in securing the necessary majority support without the cooperation of GG and SI. This defensive strategy has been seen in similar scenarios where key shareholders exert their control to protect a company from external threats.

5. Coordinated Strategy

The precision with which GG and SI’s combined holdings reached exactly 25% suggests careful coordination. This is unlikely to be a coincidence. In my mind it actually points to a deliberate effort to secure a meaningful level of influence. With this ownership percentage, they can shape decisions on issues like board appointments, dividends, share buybacks, and long-term strategy.

6. Long-Term Vision

Its also possible that GG and SI are looking beyond short-term gains and instead positioning themselves as long-term investors. (SI has been on this journey for many years and I’m pretty confident he would want to reap all the benefits of his hard work. I don’t believe he would be doing this as a short term gain to exit early. He’s been in too long for that. GG has proven he is an astute and vey clever businessman based on previous dealings and will extract all he can) This would signal confidence in the company’s potential and a commitment to ensuring its stability and success. Examples of this can be seen in cases like Apple, where major shareholders have taken large stakes as part of a long-term growth strategy.

My personal view is that all these possible motivations should be positive for all shareholders provided the FDA finally give us the approval that so many believe is due and warranted.
We will all know before the 7th Jan (provided there are no delays/extensions from the FDA)

Like a previous poster mentioned I am hoping both these blokes get very rich and we all go along for the ride.
GLTA

None of the above should be taken as investment advice. Always do your own research before investing