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3.9¢ g medical innovations holdings limited

G'day everyone - hope your weekend is going really well. Just a...

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Brett M H

1,597 Posts.

1810

20/06/20

22:51

Post #: 45347889
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Originally posted by Brett M H ↑

@ mg97788 - For the most part, I agree with your post.

If you look at things objectively, then there is a lot of "good stuff" happening, and the company is not too far away from success.

I have pointed out a number of times that the 4C's are definitely heading in the right direction - it shouldn't take much to get to cash flow positive, and "conditions" around the world should have companies & individuals crying out for these GMV products.

But the latest huge amount of performance hurdles has really knocked the stuffing out of me - it has really got me thinking about how greedy this management team actually is in this instance?

And this is not something that I have ever thought about Dr Geva - who I have always thought would put the company first (loaning the company $ when required, converting his loan funds at higher prices etc).

I sent this email to Dr Geva tonight (this is the first time that I have ever contacted him or the company), and it will be interesting to see if I get a response.

Dr Geva

I have been a shareholder of GMV for a few years, and I have steadily built a sizeable shareholding in this company.

I have been a constant supporter of GMV, and have stood up for this company on forums many times through the years.

Even though there has been let downs quite often along the road, I always felt that you were working towards the same end goal. You have often put your own funds in when required, and you have appeared to only sell shares when absolutely necessary.

However these latest massive amounts of performance shares for all management & yourself at the upcoming AGM (based purely on some really low market caps) have floored all your Australian shareholders.

Therefore, as a direct consequence of the proposed resolutions at the upcoming AGM, I am writing to tell you that you have now either already lost or are losing their faith.

The feeling from the overwhelming majority of retail shareholders is that these huge amounts of performance shares (which should be fairly easily attainable in this present COVID induced client) appear to be pure greed on managements behalf - and for the first time we are all seriously wondering whether this management team are here to line their own pockets at our expense???

As previously mentioned, I have never had these thoughts about you before – as I thought we were on the same team?

But what justification is there for you and your management team to receive such huge amounts of shares – when GMV just needs to get back to market caps levels that it has already seen relatively recently??? And it gives you a whole 3 years to get there?

I will be voting no to all these resolutions – and many others have indicated the same. It would be different if the market cap levels in the resolutions were significantly higher – but it appears that you have set them purposefully very low for you and your team.

How can you justify so many performance shares when the SP is virtually at all-time lows, the SP is well below IPO prices (it is currently only approximately only 25% of the IPO price), the 4C’s have showed virtually no revenue increases (or product sales) for the last 12 months, and there is no evidence of sales having actually being made in the past few months (despite receiving so many approvals & despite so many deals being announced).

Dr Geva, I implore you to revise the performance hurdles significantly upwards for these performance shares. And I am talking a market cap increase of at least 50% for each performance hurdle (eg the $100m market cap “hurdle” becomes at least $150m market cap)

This will go some way towards appeasing your loyal shareholders that have stuck by you over the past years.

I would very much appreciate a reply to this email – as we are currently deeply in the red, and we are hurting badly from these latest AGM resolutions.

Thanks in advance.

Expand

G'day everyone - hope your weekend is going really well.

Just a quick update on my post from Thursday - when I emailed Dr Geva.

I received the following reply from him fairly quickly:

Brett
How much money have you invested in GMV shares ?
I have never asked for shares and options while investing into the company $12M US.
I am asking for performance shares only if the company is reaching the market cap’s we mentioned in the letter to SH .
Best
Geva

Sent from my iPhone

FURTHER EMAIL: So I then sent the following email to Dr Geva two nights ago - but I had not received a reply from him yet:

Dr Geva

Thank you very much for taking the time to reply.

I have invested around $200,000 AUD in GMV over the past few years.

Those shares are now worth around $45,000.

I fully understand the risks associated with investing in micro caps as I own a number of them, and I also understand that GMV needs funds to grow – and hopefully you can tell me that revenues are now growing strongly.

But the number of GMV shares on issue has exploded recently – and these shares are all being issued at a time when the share price is horribly low.

So all of us shareholders are getting heavily diluted – and this is about to get worse if these large amount of performance shares get ratified at the upcoming AGM.

We would have no problems voting for these performance shares for management – if the company was doing well, and if these performance shares were based on fair “market cap” figures (for the performance shares to be issued).

But the company share price is trading at almost all time lows, and the lowest performance hurdle market cap figure ($100m USD) that you have chosen is only where the market cap of GMV was just 6 - 12 months ago? And the market cap was obviously much higher than these levels just a couple of years ago.

So this is why all the GMV shareholders are infuriated that you are asking to be handsomely rewarded - just for getting the share price back to where it was a few months ago???

Based on what I am hearing and seeing, you are going to get a large number of “against votes” at the AGM. And worse still, long time GMV shareholders are leaving in droves. It may not be enough votes to stop these performance shares from being approved, but there is a large number of significant shareholders who have already voted no to these resolutions.

As I said, I have been a regular poster on forums supporting GMV for many years – and I have got to know a number of other regular posters who support GMV.

I have read in anguish these long term avid shareholders “turning” on both you and the other management over the past few days – as they feel that these performance shares are set at market cap levels that are way too low, and therefore they are now questioning your values.

Dr Geva, again I implore you to reconsider what market cap levels these performance shares start at.

Otherwise I am really concerned for my own investment, and I am also really concerned that you will be trying to raise money at share prices way below the “already horrible price” they are at today – as most long term holders will be gone.

Sorry for the long email, but I really wanted you to hear how “extremely down” everyone is about these latest resolutions.

Look forward to hearing from you.

GMV Price at posting: 5.0¢ Sentiment: Hold Disclosure: Held
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