Some won't like it but I sent in the following ahead of the Q&A.
Some of you might won't to email in some or all of the questions it contains to see if they'll actually answer them directly or whether they try to avoid them.
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Before the 8th Q&A gets going proper, I want to hear from the company directors that from now on we're simply going to be told the honest truth about the company and its future. No more spin & statements that turn out to be highly misleading at best.
Why are you having a Q&A less than 2 weeks before the release of the December 2018 quarterly revenue figures ? what are you trying to hide or avoid by not waiting until the first week of Feb? given we've had to wait nearly 7 months for something that is meant to happen every 3 months or so, I'm sure shareholders would gladly have waited 2 more weeks to be able to discuss the latest revenue numbers.
The treatment of your long standing shareholders is appalling. Your comments in a previous Q&A about how important they are & that your listening to there views on the need for regular updates etc is truly cringeworthy.
You repeatedly told your long suffering shareholders in June 2018 that there'd be no share dilution with regard to the Zenvia acquisition. That everything could be funded from the company's existing cash balances (while the share price was around 1.4 cents at that time - a price you specifically expressed as the market completely valuing the company & its prospects wrongly). Yet in December you carryout a share placing to raise funds at a massive discount (39%) to the last traded price. Even at 0.55 cents per share only 55% of the amount you wanted was subscribed for by investors. Again many of your long-term shareholders were denied the chance to participate in the offer just like in 2017. The main purpose of the funds raised is for Zenvia marketing.
In other words you got it wrong in June 2018, you didn't actually have the funds needed for running the Zenvia business, but were so obsessed with being able to tell your long term shareholders that they'd suffer no dilution because some were questioning the rational for the purchase (for the record, I was fine with the reasoning of the purchase). So because of that obsession, instead of raising some funds at around 1.2 cents back then. The other reason being the poor market value of the company.
So can you please explain to me & all your other long-term shareholders your justification & apology for raising funds at such a massive discount & how doing so at 0.55 cents per share sits with your beliefs back in June 2018 that 1.4 cents per share massively undervalued the company & its prospects, yet you sanctioned an equity raise at around 60% below that price. Thus causing more dilution than should have been the case for your shareholders ?
Shareholdings -
To the nearest $25,000 or A$25,000 how much monetary capital did each of you (Gary & Rahul) actually invest in the business in return for your Syntonic shareholdings ? It will not surprise me in the least to find out that Mr G Dunhill's investment of over A$1M in the company is in monetary terms far more than either of the executive directors committed to the company.
Why have none of the non-executive directors of the company, ever purchased any shares through a placing or on the open market ? If they truly believed in the company prospects the way the Chairman writes his statements. Or do they disagree with the executive directors opinion that the market is completely valuing the company wrongly ?
Salary's & Bonuses -
Can the Chairman & remuneration's committee please explain to shareholders the justification for awarding significant cash bonuses to the executive directors given the company's financial state?
Did they not take into consideration the share price performance over the period in question & the massive valuation losses that shareholders had endured ? Or is that because they have so little vested interest in this measurement.
Or how many of the late 2017 partnerships & reseller agreements were actually up, operational & generating revenue ?
Or how many of the key CY2018 business objectives were met ?
Or perhaps they took into account the state of the company's website when making the awards ?
Did the executive directors not feel it would have been appropriate (or feel obliged under the circumstances) for them to have subscribed all of there cash bonuses for shares in the placing ?
Dataflex -
For the last 2 years we've heard repeated claims about this product & the constant flow of unsolicited inbound enquiries within the USA for this product. Yet in the 1 year plus that you've actually been trying to monetise the product you've not signed a single USA customer to the product. Not even any of those who've had the luxury of free product trails for long periods.
On 23rd Jan 2018 you stated that Syntonic would have signed contracts (yes plural not singular) by the end of March 2018. Yet here we are on 14th Jan 2019 & Syntonic has only signed Aktay to the product. No-one else in over 9 month's. Can we take it the product is a dead duck ? & that we should write off the chances of ever seeing that $5M over the next 2.5 years from Aktay as well ?
Revenue Warning -
Following the future Freeway revenue warning (as seen on slide 13 of the 9th October 2018 presentation) where all carrier revenues were shown to be 50% below those seen in previous presentations. Can you please explain to shareholders how the Verizon contract with minimum revenue guarantees already in place could now only yield $250,000 per month instead of $500,000 per month previously (on full deployment) ?
How can a company to quote yourselves "be so critically dependent on Syntonic technologies" yet only have to pay $3M per year max (from $6M per year previously) ?
The pivot to Verizon cost a lot of time & money, will we ever see a return on that investment?
If the 2nd biggest telco can get away with paying so little, where is the meaningful revenue from Freeway Technologies going to come ? it appears you either have no pricing power, or wrongly calculated the amount the product might bring in revenues?
Zenvia Financials -
It is customary following a significant acquisition to show those financials separately so that investors can see the true underline state of the existing business (ie organic growth etc) Why was this not done in the October quarterly ? Can you please confirm that this will be done in all appropriate company releases from now until the financial results to 30th June 2019 are published ?
Website / Social Media -
The website is an embarrassment, it is totally out of date. Why do you not keep it updated & relevant ?
Why do you not use social media to promote the company any more ?
Institutional Investors -
What are you doing to attract Institutional Investors ?
Given your views on the ASX valuation of the company, why are you not considering a London listing where a number of similar company's reside like Bango & Baku ? There is a far larger pool of investors there.
Others -
How are you going to regain the trust of investors ?
Why do the directors refuse to take calls from all of the company's shareholders ?
what have you got to hide, that you treat your shareholders differently ?
Why are you not publishing monthly QAU figures showing not only the numbers for this month, but the number of users who have triggered payments for 2 consecutive months & those for 3 consecutive months. Investors also need to see the corresponding installed userbase numbers as well, to see if QAU is growing as a percentage of the existing installed userbase, or is simply rising as our technologies are available in more countries & phone networks.
What commitments are you going to give shareholders regarding regular communications?
I look forward to hearing a frank & truthful assessment of the company's future prospects in this Q&A
LOTM
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