Have to look through this excuse and wonder whether the Chairman...

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15/05/23

14:15

Post #: 67778947
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Originally posted by COD: ↑

ASX Announcement
09 September 2022
Rhythm Biosciences Ltd

ASX: RHY

Director Share Sale To Institutional Funds Manager
Details
❖ Share Sale of 5,000,000 RHY Shares @ $1.30 per share by Executive Chairman;
❖ Exclusive Sale to leading, domestic, institutional funds manager; and
❖ No further share sales envisaged for the foreseeable future.
Transformative cancer diagnostics technology company, Rhythm Biosciences Ltd (ASX: RHY) (Rhythm or
the Company) confirms an exclusive share sale conducted by the Executive Chairman to a single, leading,
domestic fund manager.
Rationale of the Share Sale
The primary purpose of the sale from the superannuation fund of which Executive Chairman, Otto Buttula is
one of three members, is to enhance portfolio diversification and better meet trustee, accounting and auditor
advice. Prior to the sale, the superannuation fund’s holding in RHY represented 95.9% of the total assets of
the fund and 98.6% of its ASX listed company exposures.
The superannuation fund will continue to maintain an oversize, majority weighting to RHY, retaining a holding
of 6,135,834 RHY Shares and 2,134,167 31 July 2024 $1.80 Options. This sale represents the first sale of
RHY shares by interests associated with Otto Buttula since his appointment as Chairman in October 2019.
Mr Buttula also confirms that there is no intention to sell any further RHY shares for the foreseeable future.

Commenting on the sale, Rhythm Executive Chairman, Mr Otto Buttula said:

“Whilst there is never a perfect time to reduce exposure to a Company that you are immensely proud of
being a part of, in this case, the numbers speak for themselves and a holding above 95% in one company
exposure, particularly in a retirement fund, with two other members, was problematic and not prudent.
Despite the sale, my associated interests continue to maintain the largest shareholding in the Company,
maintaining a holding of 10.8% (ex-options). Importantly, I am also delighted to welcome another leading
fund manager to the RHY register. The institutional fund manager is one of Australia’s most successful and
has conducted a period of due diligence on the prospects of the Company.
The team and I look forward to delivering upon the milestones we have set out and we believe the remainder
of the calendar year will represent another period of significant achievement.”

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Have to look through this excuse and wonder whether the Chairman saw some writing on the wall!!. Seems awfully convenient in hindsight.

The fact that Directors are not backing this stock with buying may indicate a lack of progress on commercial outcomes and potentially more downwards price movement. Could also be a closed trading period. Either way the bottom must be near!!

RHY Price at posting: 34.0¢ Sentiment: Hold Disclosure: Not Held
1 Upvote

0 Great analysis

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