AGM summary - December 16, 2015
Meeting was started by voting for resolutions 1 -5 of which Resolution 2 & 4 were withdrawn. The meeting was chaired by John Murray of Steinepreis Paganin.
Resolution 1, 3 & 5 were ratified.
Side note on Resolution 5: Nemex resources issued 12,000,000 Consultant options to a group of Asian based professional investors to assist with the promotion of the Company and introduction of Wavefront's biometric technology to professional investors and technology companies in mainland China.
These options are able to be converted at 10 cents per option in June 2016.
The meeting was then open for questions and general discussion.
Question:-
Can you provide further detail on intentions of company going forward?
Answer (Mr Zhang):-
Appointed in October 2015 as a director. Fully supports WBT to develop technology in China to miniaturise, fund and commercialise in China.
At the same time, will be exploring other opportunities to benefit the company and its growth. Shareholder's ideas and suggestions for opportunities to support growth for NXR are also welcome.
Mentioned whilst waiting for results from WBT's technology being developed in China and the ASX relisting, potential shareholders will recognise the development and support the technology.
(Please keep in mind Mr Zhang has a thick Chinese accent and was difficult to understand even though I was sitting directly in front of him and trying to decipher what he was trying to convey).
Question:-
(Caketin) If the technology is proven successful, is your intention to still gain control of WBT or remain at 40 % ?
Answer (Patrick Flint)
On November 23, NXR entered a transaction for a controlling interest in WBT via a CR which was discussed with major shareholders who were and still are committed to WBT's technology, but we have different thoughts on how to get there.
Very recently, the major shareholders thought the transaction was too dilutive and expensive and have withdrawn their support for that transaction. My understanding is that it is still their intention to move to a controlling interest in WBT and fund WBT. He went on to say that he didn't know how this would be funded and is still subject to conclusive results from independent testing.
Will see how Mr Zhang's current trips to China go with the relevant interests that he meets there with Wavefront. I think the intention is to follow original subscription to convert funding into WBT into a controlling interest in WBT.
The ultimate goal, subject to success on different levels with WBT, is to increase current holding by injecting funds to 11% gaining major control.
Caketin said one of his concerns was that the acquisition of Wavefront via Wavefront provided Wavefront with the funding. This then changed to an acquisition through another avenue which cut Wavefront off from the funding. Then yet another Announcement started talking about different technologies and that there were other competitors in the field. Then a capital raising which effectively doubles the amount of shares on issue for less than half the price than it previously was, which was a shock to the market and you wouldn't of been surprised to see the results, so I am not surprised the shareholder whoever they may be may have some objection. I would have had some. (Silence! Lol)
Mr Zhang then agreed with the comments that we are under negotiations with Wavefront for developing the technology in China as well as how to fund Wavefront.
A question was then asked what was current cash position and if NXR is to be domiciled in WA. $400,000 net and intention to be domiciled in WA, but not certain was the answer from Mr Zhang.
I then asked who will be on the current board at the conclusion of the AGM.
Patrick Flint will resign as director and Paul Jurman will cease to be on the board at the conclusion of the meeting.
Mr Zhang will continue to be a director.
Mr Zhang identified a proposed director. Mr Ding.
Zhang then spoke about his philosophy. He lives in China, but was educated and spent most of his career in Japan. 'Harmonisation' is the principle in connection to develop this company. A new board, replace the old and Mr Ding from Bejing will become a director. (See NXR website for Mr Ding's bio).
Mr Ding will join the company and with his background will not only support WBT to develop and commercialise technology in China but to also seek out new opportunities to develop and fund new growth market in USA, Australia and China.
Caketin and I vented our frustration over the past six months to which Mr Zhang agreed and aired his frustration as well. He still believes the technology from WBT can be successfully commercialised.
"We fully support Wavefront in China. We have the technology, we have the funding and we have a huge market."
The meeting then concluded.
Informal conversation post meeting:-
Mr Zhang approached caketin and I re-emphasising 'harmony' again, confirmed as frustrated as shareholders and is in communication with Stephen Mason.
Also mentioned 'the West' moves too slowly for fast pace of technology. China has the resources, the technology and the funds. Is currently in talks to move the company forward at a faster pace.
At this stage, I can only provide what was discussed. It was a short meeting (30 minutes), with a small attendance. Unfortunately, I cannot supply more information than the above.
In summary, Mr Zhang recognises the potential of Wavefront's technology, understands the current frustrations of shareholders and is just as ticked off as we are.
I prefer actions to rhetoric myself...action one from our major shareholders in the east was to get rid of the board at the first opportunity (AGM) and at the last hour (smart move).
They get one tick for action from me.
The above is not verbatim, but a summary from my notes.
Mr Zhang said he is open to discussions/phone calls from shareholders.
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