Ann: Change in substantial holding, page-14

Great job hosh!!

Sounds like a politician’s answer to a question they would rather avoid. I know engaging with these guys is difficult as they don’t seem concerned with the views of shareholders but I feel it’d be an interesting follow up question to ask whether or not the CEO is supportive Ezcorp’s creep toward control. If he wasn’t onboard then, given our cash position, surely a buyback would be in place right now and some action would have been taken to bridge the substantial gap between the market cap (24c) and the net tangible assets (29c).

The CEO has watched Ezcorp (who’s CEO and CFO sit alongside him on our board) accumulate shares in lots just under the amount permitted by the creep provisions in the corporations act each half while we have continually traded at a significant discount to net tangible assets.



If, in the fullness of time, Ezcorp gains control and makes a low-ball bid at or around book value, there’ll be genuine questions asked of the current board and how they upheld their fiduciary duty, having stood by while one minority shareholder with significant board influence crept into control, while such an obvious course of action (a buyback) would have delivered a superior outcome for the majority of shareholders.