QUESTIONS THAT NEED ANSWERS IN UPCOMING WEBINAR, page-10

I thought I’d ask grok
answers seem to make sense
”I don’t have access to Adrian Floate’s personal decision-making process or private information, so I can’t say definitively why he hasn’t purchased Spenda Limited (ASX:SPX) shares on the open market. However, I can offer some potential reasons based on general financial, strategic, and personal considerations that might influence a CEO’s decision not to buy shares on the market, even with insider knowledge. These are speculative and not specific to Floate’s situation unless supported by available data.1. **Existing Share Ownership**: Adrian Floate already holds a significant stake in Spenda Limited, reportedly owning 6.65% to 8.26% of the company’s shares, valued at approximately A$2.49M to A$2.76M, depending on the source. This substantial holding may reduce the need or incentive to purchase additional shares on the market, as he already has significant exposure to the company’s performance.[](https://**.st/stocks/au/software/asx-spx/spenda-shares/management)[](https://**.st/stocks/us/software/otc-crot.f/spenda/management)
2. **Compensation Structure**: Floate’s remuneration includes a mix of salary, bonuses, and performance-based incentives, such as stock options or shares, which may be granted directly by the company rather than purchased on the open market. For example, his 2024 five-year contract includes performance-based rewards payable in stock options or cash, subject to shareholder approval. Acquiring shares through compensation rather than market purchases could explain the absence of on-market buying.[](https://www.tipranks.com/news/company-announcements/spenda-limited-reveals-ceos-new-5-year-contract)
3. **Liquidity or Financial Constraints**: Even with insider knowledge, Floate may prioritize personal financial liquidity or have other investment commitments. CEOs often have complex financial portfolios, and he might be allocating capital elsewhere, such as personal investments, debt repayment, or other financial obligations, rather than tying up more cash in Spenda shares.
4. **Regulatory and Insider Trading Restrictions**: As a CEO, Floate is subject to strict insider trading regulations under Australian Securities Exchange (ASX) rules. If he possesses material non-public information, he may be restricted from buying shares on the open market during certain periods (e.g., blackout periods before earnings announcements). While this wouldn’t explain a complete absence of purchases over time, it could limit opportunities to buy without raising legal or ethical concerns.
5. **Confidence in Company Strategy vs. Market Timing**: Floate may have confidence in Spenda’s long-term growth but believe that current market conditions or share prices do not present an optimal buying opportunity. For example, Spenda’s share price has been volatile, with a 52-week range between $0.01 and $0.01, and a recent 57.14% drop from its high. He might be waiting for a more favorable price or focusing on company performance rather than signaling confidence through personal purchases.[](https://www.intelligentinvestor.com.au/shares/asx-spx/spenda-limited)
6. **Strategic or Signaling Considerations**: CEOs sometimes avoid buying shares to prevent sending unintended signals to the market. For instance, buying shares could be interpreted as a signal of upcoming positive news, potentially attracting regulatory scrutiny or creating expectations that the company may not meet. Alternatively, he might believe his existing stake and leadership role sufficiently align his interests with shareholders.
7. **Risk Management**: Floate may be cautious about increasing his personal exposure to Spenda’s stock, especially given the company’s unprofitable status and small market capitalization. Over-concentration in one stock, particularly that of a small-cap company like Spenda, could pose a personal financial risk, even if he is optimistic about its future.[](https://**.st/stocks/au/software/asx-spx/spenda-shares/management)8. **Alternative Incentives or Priorities**: Floate’s focus as CEO may be on strategic initiatives, such as the $3.9M capital raise in 2023 or the Capricorn DSD Project, rather than personal share purchases. His efforts to grow the company’s value could be seen as sufficient alignment with shareholder interests without needing to buy shares on the market.[](https://themarketbull.com.au/2023/06/22/spenda-ceo-adrian-floate-reveals-spendas-3-9-million-capital-raise-and-exciting-future-roadmap/)[](https://www.youtube.com/watch?v=32DKK_A2CNk)
9. **Market Perception and Sentiment**: There’s evidence of mixed sentiment among investors, with some expressing frustration about Floate’s leadership or lack of on-market purchases, as seen in a HotCopper forum post calling for him to buy $100k worth of shares. He may be aware of such sentiment but choose not to act, possibly to avoid fueling speculative trading or because he believes his current stake is adequate.[](https://hotcopper.com.au/threads/petition-for-adrian-floate-to-buy-100k-on-market.8247048/)
10. **Personal or Ethical Stance**: Floate might have a personal philosophy against buying shares on the open market, perhaps preferring to earn equity through performance-based incentives or avoiding actions that could be perceived as manipulating market sentiment.**Critical Note**: Some sources, like a HotCopper thread, express negative sentiment toward Floate, with one user calling his actions “bordering on criminal” in relation to past statements about the company’s roadmap. However, this is an opinion from an anonymous forum and lacks substantiated evidence of wrongdoing. Such sentiment could reflect investor frustration rather than objective fact. Conversely, Floate’s long tenure (since 2018) and significant shareholding suggest a commitment to Spenda’s success, even without on-market purchases.[](https://hotcopper.com.au/threads/adrian-floate-007.8517023/)[](https://**.st/stocks/au/software/asx-spx/spenda-shares/management)[](https://www.marketscreener.com/insider/ADRIAN-FLOATE-A20Q5K/)
hope that helps