AGM

It was a fiery and even uncomfortable meeting once the floor was given the opportunity to speak.

A significant shareholder gave the board and the management a blast for never having achieved a profit.
The board accepted the criticism on the chin and patiently and clearly demonstrated the way ahead.

Apparently one major shareholder has been unloading his/her stock in recent days contributing to the precipitous slide in the share price. I guess we'll learn who it was in due course.

The Company has, to date, concentrated mainly on building a substantial user base through direct billing. Direct billing is like a credit card payment in that Smarttrans picks up the 1-2% (Max 3%) charge for the service. Obviously this was slim pickings but has served a useful purpose which should pay dividends in the future. The process has enabled Sma to accumulate a client base of up to 6 million subscribers. Furthermore the process has enabled Sma to develop valuable insights and experience which can now be used to assist the Company to build a more sustainable business.

Sma now has the capacity to facilitate sales in China without the client having any physical presence in the country: the client is then paid in Australian dollars removing the currency problems in moving money in and out of the country. This facility is rare and is a big plus for Sma. Not only does it enable Sma to facilitate sales of Australian goods in China but also goods from other parts of the world. It is this facility that should see Sma now pull itself out of the doldrums it now finds itself in. Profit margins are significantly higher and much of the groundwork is already in place and functioning.

The vibe is that there should be a noticeable improvement in the next six months and in two years everyone should have a big smile on their face. Of course there are no certainties but it is evident that the Company is on the ball and determined to succeed.

Lotteries are part of the past and the future. Sma dropped out of lotteries on mobile phones a few years back because too many people got involved and the Government eventually stepped in and imposed a ban. As has previously been advised (by the Company) Sma is now part of the administration that is setting up a new mobile phone lottery system. The fact that the Company is intimately involved in the process means it has every chance of being on the ground floor if and when there is Government approval for it to proceed.

Hopefully, the brief summary above will provide my fellow travelers with some comfort.