I managed to have a browse of the annual report. A couple of things caught my eye.
There are outstanding warrants with exercise price ranging from 18c to 30c across 2025 to 2027 respectively.
Under the 16 May 2022 funding agreement with RnD Funding Pty Ltd, LMG has issued 80,000,001 warrants at
different strike prices and dates, as follows:
Warrant Amount Exercise Price Expiry Date
8,888,889 $0.18 31/03/25
8,888,889 $0.18 30/06/25
8,888,889 $0.18 30/09/25
8,888,889 $0.24 31/12/25
8,888,889 $0.24 31/03/26
8,888,889 $0.24 30/06/26
8,888,889 $0.30 30/09/26
8,888,889 $0.30 31/12/26
8,888,899 $0.30 30/06/27I'm hoping the share price will be well beyond 30c by 2027 although the shares on issue will be a problem because we will be getting to almost 2B shares. I guess in the long run a share consolidation is inevitable. Probably a 10:1 consolidation.
The significant change in the state of affairs of the Group during the financial year is an increase in thecontributed equity of $5,621,686 from $48,527,484 to $54,149,170 as a result of issuing the following fully paidordinary shares: 114,087,879 shares issued at a value of $5,621,686There were 114M shares issued for the year, that dilutes our holdings by about 6% however it did raise capital value by about $5.6M which is about 4.9c/share. So, on average they were issued at a discount because the average share price was higher.
Director's remuneration is where i have a significant issue when we compare the 2022 and 2023 reports.
For 2023 there were no performance related payment component to any directors noting that two Directors had performance bonus components in 2022 of about 40% of base "salary".
Comparing 2023 to 2022:
- The Chair(Jock Murray) had a 30% increase in base "salary".
- DP decided to forego bonuses and had a 14% increase in base salary.
- Bruce had a 30% increase in base salary
- Lee also decided to forego bonuses for a 44% increase in base salary
- Wandmaker had a 47% increase in salary(assuming he took over from Torpey)
- Lee and Paterson were awarded 100% of their bonuses for 2022(that decision is made by the full Board)
These increases (14% to 47%) are massive for a company that has basically no operational revenue.
Further, with no bonuses, there is no performance incentives to meet timelines or schedules or to communicate to shareholders.
I find that setting and approving remuneration increases for the Board by the Board is very incestuous. They should have a remuneration committee like most Boards do.
I think we need to look very closely this year when it comes to the AGM and approving Director's remunerations.
