agm summary

Sorry for the delay (family matters take priority), but as promised here is my summary from the AGM.

I attended the AGM last week and I had quite a few questions to ask. I arrived fairly early and managed to have a very quick chat to Ross before we started.

It would be fair to say the AGM was fairly lively with shareholders (maybe 10 or so) asking a fair few questions. It started off by going through the AGM voting. I must say, a lot of the resolutions nearly didn't get through with many having the high 40% no votes.

I personally chose to vote Yes, not because I think they deserve extra shares etc, but I do see a benefit with aligning the directors interests with shareholders.

A majority of the time, the questions revolved around the Bergen deal and the upcoming share placement. All the obvious questions were asked. I asked repeatedly, that if the Bergen deal was so good, why go with Pattersons. To be honest, I feel (as many do) that they have completly ballsed it up.

I had a meeting with them around August where I repeated told them to avoid a Springtree type deal. They obviously didn't listen as it has been a farse ever since.

The problem is that the Bergen deal had the "fear" of dilution, and the Patterson deal just brings this fear to reality. The only plus to this is that we to some extent are masters of our own destiny. We choose wether or not to give the company our money, or let Pattersons get cheap shares through the underwriting.

I believe Pattersons have put a bit of a scare through management with the Christmas deadline looming (i.e. do it now, or have to wait until after Christmas).

I still think the Patterson cure was worse than the Bergen disease.

This all said, at the end of the day, the company needs money if it is to realise its potential. It is not going anywhere without funds.

The next 9 months SHOULD see lots of postive news flow. News about the US deal should not be too far away, and the Omron deal is progressing.

A smart move would now to be release information of the US deal BEFORE the rights issue lapses. This would hopefully give the share price a boost, and lead to a high rights issue take up. I wait to see if this happens, or if it is drop the ball number 2.

I think it is fair to say that shareholders have put management on notice. They now have no excuse but to perform. In my book, this is their last chance to get it right.

In Mike's defence, he has only been their 4 months. He got a lot of heat put on him at the AGM, and I think some of the stress showed.

There were some positives as well. It sounds like the Omron deal is progressing well, and it sounds like they are back over there at the moment, so hopefully we get some good news soon.

I still believe we are due for an update about the US before the end of the year (which is not far away).

At this stage I will be taking up my entitlements, but I will be watching their performance very very closely.

If I think of anything else, I'll let you know. Feel free to add any comments or ask any questions.