IMPORTANT - vote AGAINST the resolutions at this year's AGM

It is your company but value is being systematically taken from you with 10% of shareholder capital allocated to a small number of executives/directors every three years. This is creating incentives for excessive expansion and shareholder dilution that builds wealth for senior executives/directors but is destroying the share price.

So read the notice carefully and vote AGAINST the resolutions at this year's AGM. It only takes a few minutes.

What is proposed is more excessive dilution of shareholder capital through further grants of cheap long term options to Wayne Arthur and John Rankin. The request to approve the granting of another 10% of shareholder capital is excessive. It comes after the value of the company has fallen by 50% over the past year and shows little regard for the support the company received from shareholders in the capital raise in 2021.

It appears the new directors have some relevant business experience but have limited financial experience. It is not said whether they have sought or been provided proper advice on the remuneration proposals.

The goals of the executive and employee share plans are supposed to align shareholder and employee interests. But the terms are so generous that Wayne and John can in effect, effectively grant themselves 10% of the company's share capital every three years (effectively what generous 10 year options represent) - regardless of the share performance of the company.

They claim in their quarterly report that a lot of shares have been bought back. This is quite misleading. What they didn't say is that the substantial amount of executive options already granted have 10 year terms (!) and have certainly not expired. So there is not a strong case for further grants. It is not as though the options they were previously granted had three year terms leaving them with no upside.

What we are seeing is Skyfii repeatedly raise capital from shareholders who are then diluted by excessive grants of free option. It is mostly other employees whose shares are being bought back as they are letting their loans default due to the poor share price.

This poor governance practice will ultimately make John Rankin and Wayne Arthur rich, but it comes at the expense of shareholders, damages the reputation of the Chair, the new directors, major shareholders like Thorney and fails to create the right incentives for their fellow employees. This is not the way successful businesses are built.

The remuneration approach needs to be reconsidered, withdrawn from the AGM pending a full review backed by proper advice and consultation with major shareholders.

In the meantime, it is critically important to vote against Resolution 1 (Remuneration Report) and resolutions 5, 7 and 8 (which are effectively the resolutions that create misaligned incentives between shareholders and the senior executives.