Ann: Chair's letter to Shareholders, page-5

For a man who used to be quite direct he is learning to write in the Clinuvel manner which is not so direct. And when Clinuvel does write something to the ASX which is very direct they have trouble backing those words with actions ie the share buyback. The Chair's letter does not mention Short Sellers who ASIC data irrefutably show are directly involved in CUV trading each and every day and who have led to the current share price. This has gone on for 5 years and the shorters are the main reason the share price is what it is today, and they control the closing CUV share price pretty much every day, but he does not mention them? Shorters are the controlling force is the market valuation of CUV and this also reflects shareholder sentiment, Clinuvel came out swinging 6 months ago in support of shareholders with the share buyback notice but have failed to capitalise on that momentum and positive sentiment, and then after the recent great financial results they have again failed to back up with any significant share buying. I'm not sure what these guys are thinking and they want everyone to back them up when they are not backing up shareholder interests in my opinion by simply carrying out the buyback in full? It's pretty clear shareholders support the Clinuvel strategy, great financial performance, and have shown long term commitment to the cause. For myself the questions and criticisms arise from implementation and not putting shareholder interests front and centre with just a tiny percentage of massive cash holdings - as they stated to the ASX. Everyone knows there can be hiccups with Biotechs but there is no reason for a share buyback not to be smoothly carried out - companies announce share buybacks and then complete them routinely and without fuss all the time because they are a simple capital management tool.



As a reminder here's what the Clinuvel board of directors said about the crazy undervaluation, and also what the company said in a recent newsletter regarding the share buyback (underline mine):

"Board of Directors view current market capitalisation as decoupled from the Company's value". PW said on the same release "Given expected earnings, underlying growth in existing and new porphyria markets, current cash reserves, and projected expenses over the next 12 months, redistribution of capital to shareholders through a buy-back program is appropriate".

"We have chosen the moment of a repurchase as first clinical results for 2024 are published, and we will keep at it until those who gamble against the Company have understood the message. Given the expected future cash flows, we are in the position to prolong the program when required, since Board and management do not believe that market value has reflected the Company's performance in recent months. To those shareholders who have proven supportive, we have waited for the right moment to strike on your behalf."

"The share buy-back further increases the relative percentage of ownership for our owners, and thereby compounds CLINUVEL'S strategy to minimise dilution. With 1,500,000 shares (or approximately 3% of the outstanding share capital) to be repurchased, we hold a longer-term view on capital management without jeopardising plans to reinvest and expand the Company."

"The first trading days after the buy-back announcement on 14 March dispelled the myth that the share price is reflective of performance only"

All IMO DYOR