An Important Notice to Shareholders of The Hydroponics Company...

An Important Notice to Shareholders of The Hydroponics Company Limited (ASX: THC)


I write to you ahead of the General Meeting of shareholders, on Thursday March 15, which I called to re-establish good corporate governance, transparent reporting to shareholders and make changes to the board to enable it to function as a board and not quasi-management.

I have received support from many major shareholders including the two largest shareholders:

Jason Colquhoun, the corporate representative of the Company’s largest shareholder and vendor of THC’s Hydroponics Division:

“As representative of the Company’s largest shareholder, I support the resolutions proposed by Alan Beasley for the March 15 meeting. I believe that at this time it is proper for the Company to make changes at the board of directors level and I am behind Alan Beasley in making those changes.”​

and recently appointed director and corporate representative of the second largest shareholder, Mr Steven Xu:

“Since being appointed a director, I have had the opportunity to consider the many aspects of the Company and have formed the view that a new board is appropriate.
“I strongly urge shareholders to support all the resolutions to be put to the meeting of March 15 as proposed by Alan Beasley.”​

My purpose for calling the meeting, is to have shareholders confirm a Board of Directors who will:

1. Act in the best interest of shareholders;
2. Apply good corporate governance practices;
3. Act in a transparent, communicative, and cooperative manner;
4. Work in a team environment;
5. Disclose matters which should be disclosed to shareholders and the market;
6. Apply stringent fiscal disciple to expenditure of shareholder funds

Together with Steven Xu and the 2 new directors, it is my intention to continue to build on the successes initiated by the Company under my former Chairmanship, including:

• the awarding of 2 Medicinal Cannabis licences to Canndeo
• agreement with Endoca for importation of product
• partnership with BOL Pharma to initiate Clinical Trials in Australia.

We will also assess the veracity of new initiatives and implement them as appropriate where they conform with Australian law. It is also our intention toengage an executive search firm to conduct a search for an independent, well qualified, highly experienced and well-known Chairman.

I thank you for your continued interest and support for THC and assure you that, together with a newly constituted board, I will work hard to ensure that the issues raised by me will be addressed for the benefit of all shareholders and the Company.

If you have not yet voted for the EGM, I commend you to do so, and would be appreciative of your support. If you have already voted you can change your vote in support of the motions by submitting another proxy which will replace any previous proxy.

If you do not have your proxy form, or didn’t receive one, then please contact me +61 2 9251 7177 and I’ll arrange to send you one urgently.

Please send your proxy by email to [email protected] or fax to +61 3 9473 2555.

A sample of the proxy is provided for your guidance and included with this letter.

To be sure of your proxy being valid all proxies must be received by Computershare by 5.00pm next Monday, March 12. Please ensure that you sign in the correct form as an individual or as a company.

Thank you again, and I invite you to call me at any time on 0419 996 365 to discuss further.

Alan Beasley
Founding Chairman