Okay, I have given a great deal of thought, research, and HotCopper-free time to the issue of this proposed scheme. Here are some of my conclusions.
The board absolutely, definitely does
not intend to trigger a bidding war. If they intended that, there are better ways to do this:
- A "scheme" is an instrument originally designed for a takeover of a company in receivership. This explains the rigid take-it-or-leave-it wording of the scheme, and the conditions imposed on the parties. The scheme is designed to prevent a bidding war, not to provoke one.
- If the company had intended to spark bidding they would have told Pfizer to make an on-market takeover offer. This would have given everybody a much freer hand: allowed the board to recommend against it, ask Pfizer to make a better offer, solicit alternative offers.
- Clearly the board have connived with Pfizer to attempt to rigidly stitch this deal up. Believing this is some tangled way to boost the share price is wishful thinking and the result of too much move-watching.
The CEO and the board have acted deceitfully.
- On 20-Jan-2022 the company announced a partnership with Homify in the Philippines. In that announcement Tony Keating stated "we look forward to this launch later in the year". This statement was approved by the board.
- On 14-Feb-2022 the company announced a partnership with Health Teams. In that announcement Tony Keating stated "This deal strategically positions us in the growing market of remote patient monitoring in aged care which is recognised as a key driver in improving quality of life for aged care residents". The board approved this statement.
- Yet as revealed in the Scheme Implementation Deed Resapp had already signed a deed of confidentiality on 30-Dec-2021.
- Tony Keating and the board therefore knowingly and deliberately made public statements designed to mislead shareholders into thinking that they intended to continue operation when they did not.
Over the last two years the business has released public announcements purporting to establish the foundations of a global business:
- Fifteen partnerships with organisations around the globe of sizes ranging from individual clinics, through regional and national levels, to multi-national corporations. This includes Alodoktor, Medgate, the NHS, Sanrai, and AstraZeneca..
- Five pilot or trial projects.
- Six software or hardware product lines at various stages of development: ResappDx, SleepCheck, Covid19 test, patient monitoring (cough detection/counting, condition monitoring RSV/COPD), ruggedized device, wearable device.
So my question is:
How can all this be valued at only 11.5c per share?There are only two possible conclusions:
- The company has lied to us about the value of all these supposed building blocks. We have already seen that the company has issued apparently duplicitous statements about its intention to continue operating.
- OR the company for some reason that is impossible to determine has decided to throw all of this work to the winds for a mere pittance.
Whatever the reason, I can't see how the present management and board can be allowed to continue to run this company.
(20min delay)