I did speak my mind, via all those questions that Shareholders collated, which we all approved with a TU to be selected for the conference call.
That doesn't change the fact that not one of the directors answered the very first question that was asked - 'Could each of the three new directors outline exactly what they individually plan to do to drastically improve the situation of share price in the least amount of time possible?' Not one. They all chose to give their bio's instead (which we already know and have). Do you think if I had re-asked the same question again at the end, that it would have made a difference? I doubt it. If they had wanted to answer the question, they would have done so at the beginning.
What it does tell me though, is that Matt and this new BoD are selective in their approach to Shareholder concerns and this notion was verified to me when Matt excluded my question (which received adequate votes) relating to the following: 'With approximately 4 million dollars in the bank and a current cash burn rate of approximately 2 million dollars per year with additional increases in OBJ's BoD size; is the OBJ BoD considering necessary capital injection options to keep OBJ primed for growth?'
OBJ currently have a cash burn of over 2 million with 4 million in the bank. We have two viable products to potentially generate revenue. One is the SK-II Magnetic Booster which is 1st gen/seasonal and the other is Olay Magnemask, also 1st gen and mostly consistently out of stock to date. Both products are first generation, where repeat sales from the same consumer are nigh impossible; as they are not integrated products. P&G have manufactured approx. 1.5 million products in total incorporating MicroArray, all being 1st generation (non-repeating) in over 4 years (since inception), with an average royalty of approx. $0.70 cents (as highlighted by Jeff today).........so about a million in revenue of which we have already been paid about 800K. There will no doubt be further products manufactured, but this is what we know so far. Additional meaningful revenue for any new or additional work plans or products is at least 1.5 - 2 years away. I'm not highlighting this to cause panic. It is what it is. IMO, it is not beneficial for Shareholders to remain in denial regarding these aspects.
IMO, given the notion that Australia is sitting on a property down-turn cliff estimated to potentially be upwards of a 40%-50%, where major banks are already trying to conceal the current foreclosure percentages as outlined by real estate agents and 60 minutes last night; it is irresponsible for the OBJ BoD to dodge questions relating to future financing options. When any economy feels financial strain, whether property related or not, the first investments to get dumped are those that have been under-performing, are cash-flow negative, poor Shareholder relations, negative Shareholder sentiment and share-prices that have been in long-term down-trends. Guess what? OBJ tick all those boxes. OBJ imo, will need to raise sooner rather later.
And if you think the banks will not be as ruthless as they were 20 years ago.........think again. An investor buys an apartment 12 months ago for 1 million dollars and puts in 200K of his own cash. In six months time that apartment is worth 700K and the Investor has an interest only loan for 800K. The bank then calls in the interest only loan and changes it to an interest and principal loan, which sends repayment costs up over 50% higher for the Investor. The Investor can't sell, as the apartment is now worth 700K and the mortgage is for 800K and the Investor has lost his 200K. All Banks are also now making it very difficult for Investors to re-finance with competitor banks.
They want to recoup some of their penalties, fines and reimbursements they have paid out to consumers related to the Royal Commission, from those who finally worked out what was going on. I was one of them. I had a credit card with a 16K limit. I always noticed 2 monthly direct debits payment deductions coming out, which I thought was split between interest for cash transfers and interest for credit card purchases. A couple of times I just paid out the credit card. Then I got lazy for 11 years and didn't question it, but always wondered why the amount wasn't going down on my CC. And then one day I asked the lady at the bank (on the phone) if she could explain why there are two deductions. It turned out that one of the amounts was for interest and the other was for credit card insurance. I had no recollection of approving any such policy. The minimum interest payment for the credit card each month was $150 and the CC Insurance was for $180 each month. It turned out that I was paying $180 per month for 16 thousand dollars of disability insurance. Yep, that's right, it was THE most expensive insurance on the planet. There was no death cover, just 16K disability and if I became unemployed, the bank would pay the interest repayments for 6 months - I never made a claim incidentally. I told the lady that my personal disability, death, house, contents and car insurance combined, was less than this premium. 2 days later I received an email stating that the bank could not locate the voice recording verifying who had authorised the policy and that they will be refunding ALL of the premiums from the last 11 years. I guess when you are a bank, it is always good to play the numbers game as you'd be surprised how many people don't notice. Yep, 11 years of premium refunds and I didn't ask for it, they offered it.
The banks are pissed off. ATM money laundering charges, Insurance and Banking ripoffs, charging dead people and pushing disabled people into products they don't understand. The list is very long and there are lots of unsuspecting mum's & dads that have been taken advantage of that don't even know it yet. Most good sales people know it's a numbers game. There will be many who won't even know they have been ripped off. I was one of the lucky ones who eventually woke up. The Royal Commission into banking and insurance has not been kind to the banks.
Do we all think it is acting in Shareholders best interests to wait until OBJ is under 1 cent to raise needed capital? Or do we all think that OBJ will be in it's strongest partnership negotiating position when the bank balance is under 2 million in 12 months time?
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