BP8 (ASX) Ann: Quarterly Activities/Appendix 4C Cash Flow Report

Originally posted by possum_30 ↑

Just got off the phone another gentleman phoned me back. I spoke about the lack of information, updates, progress to SH's. He said he understands where we are coming from & he will pass on our concerns in writing & the weekly verbal update that they have with the company & he also said that other shareholders had voiced their concerns to him in the last weeks, but he did say there was ongoing activity & they do adhere to the asx reporting guidelines because they do release info quickly when they receive it, I mentioned to him about an update on the cannabis side of the business there has been nothing except that they were going to update the market, nothing,,, what did they spend that $358,000 on & the rest of the CR money besides paying back the loan facility of just over $700,000 that was 4 months ago. He said covid has held up some processes but I told him they could use zoom or the telephone there are other ways of doing business these days. I told him there is a forum where companies are discussed & there is quite a few very disappointed & disgruntled (P.Off.) shareholders in the way stem cell has treated it's SH's with the lack of info & their sick of watching their hard earned going down the drain & that the SP is absolutely dismal. I think he got my message !!!

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Thanks for your efforts @possum_30 and @Protagonist, very much appreciated.

I've also been told that COVID impacted their business, but when I challenged why they reported "There has not been to date any significant impact of COVID-19 on SCU’s operations and business activities" in the quarterly statement, there was no proper answer.

If there is an impact because of COVID or other issues such as seasonality of the revenues, they have to explain that properly. By not providing proper reasons on why the revenue dropped, and by issuing contradicting statements on COVID the market has implied worst case that the revenue uplift reported in Jan was one-off or fluke and punishing the company accordingly. Right now the company might think they have cash and the sentiment will fully turn around when they make progress in the hemp space, but they can't sit in a glass box and show a lack of care towards shareholders as it'll push the company beyond a point of no return.

The fact that some brokers are offering shorts on a $15mil mc company is an indication of the current market sentiment. This is the first time in the last 3 yrs a short position is offered/opened on the company...it's a very small position mind you, but it's unusual to offer shorts at this end of the market.

Hope is not a strategy, but I hope that all the noise we made would lead to better reporting and transparency in the future, I believe that's what the market is looking for at this stage. I took a position in the company as I felt that they turned around a corner with the recent acquisitions, and the new people/advisors they onboarded. I still think there is a good future for the company, especially in the carbon credits space combined with the growing sustainable foods sector, but they got to run the company like a public company if they want to grow.

All IMO, please DYOR.