AR9 Top 100, page-54

The announcement from the Company via the ASX is disappointing. It essentially says, “Forget about our past performance (or rather the lack of it), just trust us, give us more money and we will make greater inroads to the US market”. I find it quite insulting that they are assuming that their shareholders are fools. The Company has outgrown current management. They have no idea how to relate to shareholders and build their trust/loyalty or how to keep shareholders informed.

• We have no accountability of the $1M raised for Kojensi launch into the US last capital raise Oct/Mov 2021. Now they are asking for more $’s for the same purpose without accountability.
• We have no accountability of what happened to the $3M out of the last capital raise for acquisitions and why they have not redirected that money for this purpose.

They have come cap-in-hand for a purpose that was already funded hoping that shareholders forgot about the capital raise 12 months ago. At minimum I would have expected them to inform us of what/if the above has been spent and what it was spent on before asking for more. I am rather astounded that the Board has not picked them up on this.

I can’t look at this through rose-coloured glasses, announce affirmations and say how wonderful it is. There is an old saying – You can take a turd, spray it with perfume, add flowers, light candles around it to make it look good but in the end it’s still a turd. I am exaggerating to make the point that there is some bad underlying behaviour here.

I don’t have so much a problem with the purpose – it’s worth the risk to delve deeper into the US market though I have issue with process, transparency and their market strategy with so much focus on Defence when there are huge opportunities also in the private sector(diversifying the market diversifies risk). We had a huge investment into marketing and sales– for what?? The process and lack of accountability is atrocious. It points to poor management(and now Board) credibility, transparency and honesty.

The longer-term holders(as in >3years) should do ok – you should get your money back and perhaps more though when you factor in opportunity cost it will most likely be negative. The short term holders(<3 years) you have been shafted.