Yes I went to the general meeting Tuesday. Sorry I haven't responded earlier as I've been a little busy and wanted to provide some detailed feedback. Now almost 48 hrs since and I've already forgotten much of the detail! lol...I did take a few notes though.
I assume you've all read the presentation and they remained pretty tight lipped to information outside of what was outlined within the presentation.
Ian Clarkson (EC) chaired the meeting with Peter Saunders (CEO) talked us through the presentation.
I've got to acknowledge and give credit to a broker at the meeting who scrutinised much of what was presented. His clients held approximately 250m shares. He was very entertaining although at times carried on a little too far. For the privavcy reasons and for my entertainment, I'll refer to him as Mr Pink. In fact he applied so much pressure on management that he even persuaded them to revise resolutions 2.5 and 2.6 refer to yesterday's results announcement. These resolutions related to the issue of options to directors.
Mr Pink expressed his view that the exercise price of 0.6c and 0.8c were ridiculously low and were "enrichment based rather than performance based". He further questioned why should they be entitled to such performance options when the company has not yet performed. He argued that they should be remunerated in cash not shares. He also highlighted the fact that there was obvious market manipulation recently with the SP being brought down by one single trade for the day to the value of $3. The board quietly whispered between themselves for a minute and then agreed to up the strike price to 1c. It was a classic - well done Mr Pink!
CARBON CREDITS PROJECTS
It goes without saying that this is obviously the number one priority for the business moving forward. Their presentation read "First validation of carbon projects methodology imminent" and it was asked what was mean by "imminent" and Peter responded by saying "this will happen very soon". How soon? "We were hoping as soon as next week but who knows as its in the hands of a 3rd party". What annoys me is that I was told the same thing by Ian several months ago!
Added to this they did say that they could actually sell the credits on the open market now however they would fetch 80% to 90% less than the going rate.
The lead consultant performing the technical work is Green Collar of whom they claim is well respected with a successful track record. Mr Pink asked Peter how many projects had Green Collar successfully completed in the past. Peter didnt know! Mr Pink responded, "Are you telling me you hired consultant of whom you claim is so good yet you dont even know much about their past projects?!" I must agree that is very poor research on M2Ms behalf IMHO. Eventually Peter claimed that he had seen some proof of completed projects.
BLUEFISH
Nothing of interest in addition to what was mentioned in the presentation.
SIPME VIETNAM
Peter commented that the business there will present other technology related opportunities.
Mr Pink commented, "Why would you have regulatory issues if they have been doing business there for the last 7 years?" Peter's response was that the previous business was actually via Hong Kong. "The telecommunications industry in Vietnam requires a whole range of processes before you can legally operate." He further went on to say that one company had recently been raided and found non-compliant. They have since changed the requirements. He also added that there have been structural issues with the economy.
CHINA PROJECT
They moved through this one pretty quickly!
FUNDING
Mr Pink asked what was their cash position however they would not disclose this. They confirmed that no capital raising will be required "at this stage". With other carbon projects to be funded by Asian partners.
However they said the current funding resolutions are there to just "refresh" the director's power to do so if needed - lol...yeah right!! Mr Pink added further comment that 3 or 4 years ago him and his clients together had some cloute but now with 2.3b shares on issue have no cloute at all!
IN SUMMARY
There were probably about 15 shareholders present at the meeting and obviously none seemed overly impressed re the current position of the company. I can well understand Mr Pinks frustration if he and his clients have been holding for more than 4 years! And I'm sure he'd also be receiving a lot of pressure from his clients regarding the current SP.
Whilst their CCT projects are potentially very lucrative considering their small MC, I just hope they start to make some progress soon and that this business doesn't just get stuck in "almost there" mode like the rest of their ventures.
Q2 2010 - is definitely a make or break quarter for this company!
