Ann: Notice of General Meeting, page-122

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ahpigsy

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24/01/20

16:01

Post #: 42561131
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Originally posted by underdone: ↑

Shareholders are being naive in assuming that this deal will provide the funding for the Peros operation. The Memorandum (Page 109) makes it quite clear that at best Nutrition Systems "potentially" could do that. Given that the funding is needed right away it is not clear where it will come from. Certainly not from NS in the short run because in recent years it has lost money.

But the real problem for existing shareholders is Resolution 1 which asks us to approve a major change in the company's direction. The Memorandum makes that quite clear when it says

“OBJ Board of Directors are of the view the acquisition represents an attractive investment opportunity for the Company to change its business focus to that of a distribution and wholesale company.”

It sounds innocent but it's not.

Right at the moment we are not trading. That is because the ASX Listing Rules require shareholder approval for a change of the company's main business activity. Once we pass this Resolution we have not only changed our direction, but we have also acknowledged to all and sundry that the shareholders consider that the OBJ technology is a minor part of the business.

Under the ASX Listing Rules shareholder approval is not required for a sale of a minor part of the company's business. So once this Resolution is passed the directors could sell the OBJ technology without our approval.

They don't need a reason but it would be easy to find one. It could easily be said that one part or another of the company's activities need more funding so it makes sense to sell a minor part of the business.

Do existing shareholders realise that? Do you want to leave it the directors alone as to whether the OBJ technology gets sold?

Will that happen? Who will the buyers be?

Right now shareholders run the risk of losing what many of us have been following for years.

Don't be naive. Wake up OBJers.

Expand

Well, well. What a tricky little game this would be. Selling the OBJ technology to Peros, Edwards,Schapera owned company? Maybe this is the rat that I can smell.

I really done like the sound of this. " Following Settlement, the Company will predominantly focus on the distributionand wholesale business undertaken by Nutrition Systems." Danny being CEO. Too much control and focus taken away from our tech. Agreed, whats to stop them from selling it off.

Last edited by ahpigsy: 24/01/20

OBJ Price at posting: 1.5¢ Sentiment: None Disclosure: Held
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