Good Morning! I've recently had a conversation with Anteo and whilst I wasn't given any information not available in the public forum, it was good to have a conversation with a company representative. I've also done a little research into the COO position and thought I'd share some thoughts & notes. There are some things I can share and some things (although I wasn't told I couldn't share) I'm not comfortable going into detail on. I'll give you my general thoughts and current sentiment for what it's worth. I'd encourage those who want more information to first scour the Internet for what's out there and then make contact with the company through the ADO website. Do with this post what you will, but I'm not interested in ridicule or insults for sharing these notes. No doubt it will come, but don't expect much by way of reply if that's how you choose to respond. Happy for robust discussion, but please keep it civil.
1. Tamara Mills and the COO position. I can 99.9% confirm (based on research, not the conversation) she is not with the business at this time in any formal capacity.
I found this article back in March re: Geoff Cumming's retirement announcement where it notes he will assist in the transition to the new CEO structure to include recruitment of a COO and a financial officer. I don't have anything that says when the change was made with Tamara, but seeking for a new COO confirms a change was made.
2. I can confirm the Board is meeting almost daily to review the options available for the LE which has been ongoing for roughly 16 months. It was intimated that there are a range of options, some more feasible than others. I was not given any information on what these options are, but confirmed there were, indeed, options. The process is obviously coming to the pointy end with the July 11 date looming, so I'd expect these meetings to continue until that time or an announcement is made.
3. I want to be very clear on the next point, this is MY OPINION based on the conversation I had and things I FELT about the conversation, but was in no way verbally communicated, confirmed or even intimated / hinted at: I believe they have things down to a few choices for the LE and they're looking to obviously go for the optimal outcome, but it may not be possible by the deadline of 11 July. I
think asking for a further extension is not out of the question, so may be something we need to prepare for. I think we may also need to be prepared for a sub-optimal outcome that will keep the business alive, but may hurt through dilution or other ways.
4. Communications - Since GC's resignation as CEO we have all seen communications dry up. I believe the business and/or Board is aware of the discontent amongst the SH community and will look to improve this in the new FY. Anecdotally I believe a lot of this has to do with the newer management having never been in a publicly traded entity. I was not given any information on what an improved communications platform might look like, but I'd be happy to work with them on this if anyone happens to be reading this from ADO.
5. My general sentiment - All of the following is clearly my own opinion and is in no way advice to anyone on their investment strategy for ADO. Some may have noticed in the last week or so I've changed my sentiment to Hold. I'm optimistic (maybe hopeful is a better word) about the outcome of the LE, however I cannot discount the very real possibility that it either turns out to be non-optimal or extended which I believe would be very detrimental to the longevity of the business. With this in mind I couldn't have a sentiment of buy at the moment, although I do understand those looking at the current SP as an opportunity worth jumping in on. GLTA in this capacity.
6. I have concerns about the seemingly total focus of attention on furthering DIAsource's products and progress whilst the agenda for Mix&Go seems to be on the back-burner. While DIA is further advanced into the market and profitable, the idea was for the proceeds from DIA to allow for reinvestment into progressing M&G's commercialisation. That doesn't look to be happening, or if it is not at the pace expected.
I suppose what I'm saying is it would be very beneficial to SH's to have an understanding of what the intention for the business is with regards to it's core products and where they see the biggest potential. I respect what DIAsource brings to our portfolio, however the scope of product is narrow and thus the lines of revenue within that business are limited. Solid, but limited in scope.
Mix&Go has blue-sky potential in multiple industries and multiple lines of revenue. Some lines of business are obviously closer than others, but the reality of it is there has been minimal commercialisation and thus the need for a DIAsource in the first place. If they could get any type of commercial arrangement in place with a medium-large partner it would give them the financial freedom they need to either complete the purchase of DIAsource or make a decision to part ways. A corner-stone investor would also provide similar freedom, although again, I believe that could lead to considerable dilution. Partnership is the optimal outcome, just not sure they can make that happen prior to 11 July.
Not much else to add at this stage. If I think of anything else I'll add it down the track.
ALL IMHO, FWIW, DYOR, blah blah blah....
(20min delay)