Ann: Amended Quarterly Activities/Appendix 4C Cash Flow Report, page-12

  1. 267 Posts.
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    Well said Honeysoy - the reaction of some was precipitous and Ill informed.
    The discussion raised many unanswered questions in my mind, so I emailed the UCM Chairman to ask what was going on.
    On balance it seems there were faults on both sides. In my view, in the words of William Shakespeare it was "Much ado about nothing!" That simply and needlessly damaged the UCM reputation.

    However for the benefit of all, I will try and summarize in my words what transpired.
    Two independent sets of circumstances came together:
    1. UCM was in error in using the prior version of the 4c form. They can find no record where the ASX advised it had been updated.
    2. The ASX is trying to streamline its administration of Small Cap to reduce its workload and in the process is producing confusion with what (in my view) is thoughtless, poorly structured and pedantic administration changes.
    The re-issue on the correct 4c form became entangled with the prior release by UCM of the Koneksa announcement (released 3rd November 2021):
    "Uscom today announced an extension of its ongoing partnership with digital biomarker leader Koneksa to develop and use Uscom’s digital patient-monitoring technology for spirometers in clinical trials. The agreement between the companies relates to the direct wireless integration of data from the Uscom’s SpiroSonic AIR device into Koneksa’s proprietary platform."
    This Announcement was lodged by UCM as "not market sensitive." In view of what transpired this would have been better classified by UCM as "Market sensitive" as you will see below.

    The ASX did not vet the UCM 4C before releasing it – they are supposed to!
    The ASX forced the re-release of the 4C in the new format 10 days later, despite there being no additional material information in it.
    The ASX claimed UCM "Did not provide a summary of the expenditure incurred on its business activities during the quarter (per Listing Rule 4.7C.1)." This is a point I cannot confirm as the original 4c is no longer available.
    In the re-release process the ASX, in trying to simplify their system, recalled and examined the Koneksa announcement and asked "Does UCM consider the information in the Announcement to be information that a reasonable person would expect to have a material effect on the price or value of its securities?" To which the company in view of trading since the announcement replied "NO" although it took the view the future performance of the company and its long term value were vital information for investors, and so should be released.
    The ASX then warned the company they therefor viewed the Koneksa announcement as ramping. ("Section 7.10 (‘Ramping announcements’) in ASX Guidance Note 8.") and that it should not have been released.

    I hope UCM will in future mark all its information releases as "Market sensitive" and continue to release all information on progress to shareholders.
    If the ASX gets its way and information flow is restricted for Small Caps, SMALL CAP HOLDINGS WILL BE DEVALUED. iT IS UP TO US ALL TO SEE THIS DOES NOT HAPPEN.


 
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