Ann: Presentation to 121 Tech Investment Summit Hong Kong, page-11

There's a trust issue with these guys that I would caution you all to watch for. I held them in 2015 following their last IPO. I bought following their announcement 12/1/15 that they had signed an agreement with China's tobacco and liquor industry, Chenzhen Shensaier in a deal apparently slated up to $16M and again in June that product was moving, and lastly on 6/7/15 their market sensitive announcement of a A$275k invoice, implying that it was actually happening.

However, with subsequent quarterlies, the cash didn't materialize, which was frustrating as it underscored my investment decision. I challenged management - either the deal fell over or your client isn't paying. Either way, $16M is at stake. Which is it? Numerous emails sent to management and got just BS and rubbish back about "we don't do individual shareholder briefings". I wanted to complain to the ASX but didn't know how.


This is a management team that "secure" these oblique deals that no longer ascribe any value that would sensibly allow one to price the company. All you have is this carrot that they continue over and over again to hold just out of reach. Be careful to check that you're not the donkey chasing that carrot.

For me, with trust for management lost but a like for the idea (low cost of production, ease of scale, clear and demonstratable market, inimitable IP) I'm happy to sit and wait until management prove that they can deliver with actual physical and growing cash in the bank. I'll miss the initial upside if they do, but I think it's prudent.