Dear Fellow Shareholder,As shareholders, we must carefully evaluate the performance of our company’s leadership and consider the best path forward to restore value and confidence in Percheron Therapeutics. The market has spoken—and it has expressed a clear lack of confidence in the current Board and management team. This communication represents the independent opinion of a group of concerned shareholders, based on publicly available information, market analysis, and our duty to protect our investments. It is not financial advice. We encourage all shareholders to review company disclosures and seek professional advice before voting. A Troubling Track Record – Why Change is Needed Despite management’s attempts to control the narrative, the facts are clear: ❌ Significant share price decline even before the Phase IIb trial results.❌ Failure to properly evaluate the full dataset of ATL1102 before termination.❌ Market capitalisation trading well below cash backing, demonstrating lack of investor confidence.❌ No independent expert review of Phase IIb data to assess potential subgroups or trial adjustments.❌ Premature termination of a program despite investigator requests for continued patient access.❌ High estimated trial closure costs of $6–7 million, with limited explanation to shareholders. These are shareholder-driven concernsabout Percheron’s value, governance, and transparency. A Trial Failure is Not a Drug Failure Many biotech companies experience trial setbacks, but successful ones critically evaluate the data, engage independent experts, and determine the best way forward. The current Board has not demonstrated this level of rigor. The Latest Announcement – PR Spin or Genuine Progress? A contradiction has emerged in the company's public statements. In the official Notice of Meeting, the Board acknowledged that it is in 'caretaker mode' and stated that key partnering opportunities cannot be implemented until after the General Meeting. However, the latest announcement on 12 February 2025 states that Percheron hopes to submit initial non-binding proposals to one or more potential partners by the end of February. This inconsistency raises concerns about transparency and whether the Board is following its own publicly stated commitments. On 12 February 2025, Percheron announced that it had made “rapid progress” in finding new assets. But let’s critically examine what this really means: There is no formal commitment—just vague ‘leads’ from a conference. Attending an investor event and following up on discussions is standard networking, not “rapid progress.” How can the Board justify submitting proposals while simultaneously claiming it is in 'caretaker mode' and unable to implement key partnering opportunities? Does this signal a Board scrambling for a new narrative instead of methodically exploring its best options? Instead of focusing on scientific integrity and data-driven decision-making, the Board appears to be engaging in damage control. Shareholders deserve better. Our Alternative Vision – Real Opportunities, Not Just Promises Unlike the reactive approach of the current Board, we have been in discussions with world-class scientists and biotechnology experts to explore new, high-value opportunities. ✅ Best-in-class opportunities exist right on our doorstep in Australia, with internationally recognised researchers and clinicians.✅ We have a network of independent scientific and industry advisors to evaluate the most advanced options available.✅ Our due diligence is thorough, ensuring that any new investment aligns with Percheron’s expertise and shareholder interests.✅ We are in a fortunate position to advance these discussions, leveraging the networks, experience, and strategic expertise of our proposed directors. The difference is clear—while the current Board rushes to find a new direction under pressure, we have already been working to build sustainable value for shareholders. Meet the Proposed Directors – A Proven Leadership Alternative We are nominating two highly qualified and experienced professionals to lead Percheron into its next phase of success: Gregory Peters – Business Leader, Innovator, and Long-Term Shareholder Greg Peters BEc, CPA, CFP has been a Percheron shareholder for over 20 yearsand understands the company’s history, potential, and challenges. ✔ Over 30 years of experience in taxation, financial planning, and ASX-listed company strategy.✔ Founder & CEO of Cgear Australia P/L—a company with global patents and commercial applications in military and civilian markets.✔ Experienced negotiator with Heads of State, Military, UN and NATO procurement officials, handling complex commercial transactions.✔ Committed to enhancing Percheron’s intellectual assets and maintaining clear shareholder communication. Gennadi Koutchin – Capital Markets & Financial Strategy Specialist Gennadi Koutchin has over 18 years of experience in financial services, specialising in capital markets transactions and corporate strategy. ✔ Master of Applied Finance & Investment (FINSIA)—a recognised specialist in financial markets and corporate structuring.✔ Founder of XEC Partners, advising numerous ASX-listed companies on capital raisings and strategic market positioning.✔ Extensive experience in capital management and investor engagement, ensuring financial discipline and transparency.✔ A Percheron shareholder since 2010 and its former corporate advisor 2015 - 2023, committed to restoring investor confidence. These highly capable professionals bring a strategic, commercially focused approach—ensuring that Percheron can be repositioned for success. The Path Forward – What We Will Do Differently ✅ Conduct a review of Phase IIb data to identify potential patient subgroups and assess any viable path forward.✅ Ensure scientific rigor in decision-making, not rushed reactions or PR spin.✅ Rebuild investor confidencethrough clear, transparent, and consistent communication.✅ Implement financial discipline to control spending and ensure cash is deployed for maximum shareholder benefit.✅ Advance discussions with world-class research teams to secure high-value opportunities aligned with Percheron’s expertise. We do not promise overnight success—but we commit to restoring strategic direction, financial discipline, and scientific integrity to Percheron Therapeutics. Your Vote Matters – How to Support Change To replace the Board and restore shareholder value, vote FOR the resolutions to remove James Garner and Charmaine Gittleson. Visit: Voting Portal Enter your postcode (or country of residence if outside Australia). Enter your Voting Access Code (VAC) from your Notice of Meeting correspondence. Direct your proxies to Gennadi Koutchin, Gregory Peters, or your professional advisor. Vote ‘FOR’ each resolution supporting Board replacement. For further details, read our previous shareholder communications (from 3 & 8 February 2025): PERCHERON THERAPEUTICS - An Urgent Call for Change: Supporting a New Path PERCHERON THERAPEUTICS - Urgent Shareholder Update – Call for Board Replacement We need leaders who act in the best interests of shareholders and respect scientific data over personal agendas. If you have questions or would like to share your thoughts, please reach out:
[email protected] +61 423 500 233 If you would like us to call you, simply reply to this email with your preferred contact number. If you have already voted FOR and appointed us as your proxy, please forward your voting confirmation receipt to help us track acceptances. If you have already voted but would like to change your vote to support us, you can do so and send us your updated voting confirmation receipt. The time to act is now. Vote FOR new leadership at Percheron Therapeutics. Thank you for your support,Gregory Peters & Gennadi KoutchinProposed Directors, Percheron Therapeutics Ltd
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