Graeme Newing is an old man, well past retirment age, who spent...

Graeme Newing is an old man, well past retirment age, who spent his entire working life as a securities analyst. He has no experience as a director of a public company, and no experience in managing a company apart from his own small private companies.

Contrary to the annexure to the EGM notice, he does does not have the qualifications, skills or experience to be part of a public company board, nor in it's management or control.
Also contrary to the annexure, his company Newvest is the 8th largest shareholder in PET, holding 6,099,860 shares.

He states that he is not privy to the details of the company's situation or what's going on there, but he knows who leaked to the press. Oh and he doesn't have much contact with LF.

He says he is not privy to all the details on whether a share consolidation will be necessary.

I don't believe Graeme initiated this move. I believe he is being used by Bart and Freedman as a known supporter of PET to rally shareholder support.

On his website I found some comments from him regarding what the "new board" will do in response to a query from "David". See below.

It is quite clear from all these comments from him that the "plan" provided to shareholders in the annexure to the EGM notice, is comprised of Graeme's "ideas". However, in his website comments he clearly states that "my role would be primarily in support of Fred who will be the key driving force".
So what is Fred's ideas & plan ??? Anyone know ???

Here's my take on all of this if this group is to be elected as the new board .....

They're not going to operate the company as such. They are going to sit on it.

1. They will delist the company, which means no transparency for shareholders. Only one annual audited financial report.

2. They will get rid of small shareholders in whichever way they can. He talks about allowing shareholders to sell via internal mechanisms or through a platform called Primary Markets which has very little traffic. Any share sold will be sold to ..... ?

3. They will conduct a share consolidation.

4. They will sack all staff - payroll is the biggest expense by a mile (saying delisting is a cost cutting measure is bs).

5. They will only retain a minimum of staff to operate the China facility which will be soley used as a warehouse - no manufacturing; and a bare minimum of sales staff to sell off the inventory currently on hand in that warehouse.

6. They intend to invest the bulk of the cash asset, I would assume with one of the inner circle being the investment manager. They seem to believe interest earned will cover costs !!!! They say it will be low risk !!!

7. If the company manages to stay afloat after 2 years, and they can find anyone willing to give them capital, they may, perhaps, might, restart the business solely in China.

On 8th Dec 2023 he replied to a question from "David" on his website. David was posing some questions about the new boards stategy for operating Phoslock. "The new board could undertake a substantial share consolidation followed by a new equity raise to re-fund the company. But this would effectively dilute out and destroy any base value that we long- term and loyal shareholders would otherwise retain"
" it would be better to wind up the company than to have it effectively taken from us by a financial strategy that disregards the interests of existing loyal shareholders."

This is his reply.....

Hi David

Thanks foryour considered remarks. In brief, I am keen to extract some value forshareholders from the product which as you say is highly effective at solvingthe problem of blue green algae in waterways.

I believethe existing management made some poor decisions including shutting down theChina business and terminating all existing employees who after all were runninga successful business, and instead hired staff who were not experienced inwater treatment.

If electedwe would look to cut costs and husband Phoslock’s remaining cash reserves. Thecompany could possibly approach profitability with interest income more thanoffsetting costs. I would like to see the business resurrected in due courseusing former employees and their widespread industry contacts, whether asemployees or consultants. China could be the key initial focus.

My rolewould be primarily in support of Fred who will be the key driving force.

We won’tknow until we go through the books, etc, but there should be no additionalcapital required in the short term because existing cash, and productinventory, should be sufficient for at least the next year or two. In duecourse and if the company is successful, additional capital may be required tofund expansion.

To assistwith cost reduction we would consider delisting the shares from ASX but if so Iwould like to see a mechanism whereby investors could buy and sell theirshares, whether internally, through the share registry or through a third partylike Primary Markets.

Some of thisinformation will be made available in the notice of meeting to be issued incoming days. And some of it is merely my personal view and not necessarily theview of the other proposed directors.

Hope thathelps,
Graeme