Meeting with CEO

Good morning all

Some here on HC will be aware I recently sent a letter to James Kellett (Chairman and CEO of KNM) asking for a number of clarifications around the situation that KNM is currently finding itself in. The company has then put out a 4E update to the market and this has answered the majority of my questions and in recent emails James suggested that we catch up and discuss the situation. I am pleased to report that James was true to his word and we caught up for well over an hour on Thursday to discuss a range of topics. I am very apprecIative of hIs tIme and commitment durIng a very busy time.

I debated a bit whether or not to expose the fact that I did have this meeting with James. However, given that I previously stated that a meeting was offered, I thought that shareholders should know that it was a commitment that was delivered. I also want to reflect on the conversation and provide some of my interpretation here.

Disclosure: what is written here is just my opinion. It does not constitute any advice. You should act on your own volition and based on your own situation.

1/ Firstly, this was the first time I met James (after some email and phone exchanges) and I have to say I am impressed. There is a quiet but firm confidence that James projected. I asked some tough questions and pushed the boundaries a couple of times and I am glad he is running the company and the capability he brings to the table is extremely well matched to what KNM needs right now. He has the best interest of both the company and shareholders in mind.

2/ We spoke at length about the product roadmap (I'm a technologist) as this was of interest. The relationship with Dubit has been a material improvement for KNM. I'm pleased that Dubit has done a full audit on the platform and this then led to enhancements in how the content is delivered. KNM are now able to deploy new content almost on demand, where previously this was rather labour intensive.

3/ It was previously announced that a new sales team is on the ground in the US. We spoke about the quality of people that KNM is attracting and it was pretty clear to me that capability is material. People like Louis Diggs joining a small tech company speaks volumes. Nothing new here per se, but my view is that this sets the company up for success. When will we see results? I don't know, as sales cycles cannot be put in black and white, but with the starting of the school term in US, plus the new focus, my view is that the next 6 months will be an exciting time for the company.

4/ The relationship with NCAAP. And especially having access to people like Dr Hazel Dukes (who is majorly influential in the US education sector) is very significant. It feels like the company has been cultivating these massive relationships for the past year and ultimately its those kinds of relationships that will deliver results here. I'm actually quietly excited about that.

5/ The last 12 months. James acknowledged that the company has gone through a tough 12 months. However, the company has not been sitting idle and instead building foundations for the future. The new sales team, new platform revamp, UK partnership, Philippines JV and progress in Asia (Singapore and Aus) all contribute to what I feel is by far the best position the company has been in for a long time. Come to think about it, if in early 2018 KNM was at 15c without all those factors in play, what do you think this could mean WITH those factors? I'm quietly excited about what the future holds IMO.

6/ One last thing, even though I'm disappointed at the SP performance and I'm deeply in red here, I got a sense that the depth of relationships across Aus, US, UK and Philippines is second to none. In business, it's those kinds of relationships that truly make a difference and I think KNM will be just fine as a result. It might take a little time, as things are always fluid but in time results will speak for themselves. For example, who could have predicted that Trump was going to pull federal funding for education and reallocate down to individual schools? That alone put a spanned in the works. Reading about it, I think the fed DOE has now reverted back to the district funding model so we can concentrate of getting a foothold across not just NYC, but other districts as well.

My view is that given all those improvements and foundations, KNM is in the best shape that it's been for a long time. My personal view is that the next 6 months will be exciting for the company. Let's see what happens. Good luck to all holders and please DYOR.