Like the majority here i have been disappointed on the sidelines for the last 6 months as we have struggled to i think, execute some corrective and fundamental executive management decisions that would have yielded faster international mobilization and acceptance of our rapid antigen and battery technologies.
The context of my following points is that it is not about using percentage point gains from 1c to 30c and 20c to 40c, to justify and defend some executive decisions and actions that have been ineffective and incomplete, and in my view, accordingly, caused a drag on the share price.
My fundamental point for advising on the following remedial solutions and suggestions, is to see and ensure that the company's growth profile and potential is realized and that we take actions as shareholders/stakeholders to drive more considered and correct outcomes from the board that will ultimately maximise shareholder returns. [from everyone's different entry points on mkt share price]
1] Prioritising Aust TGA approval was a key consideration in my view and should have been expressly applied for 6 months ago. Most pharma/bio technology companies need Aust tga to validate and endorse its efficacy and this can then be used to promote o/s on the back of this trusted local approval process. Aust /NZ and our pacific island regions would have benefited and this TGA endorsement would have catapulted us into the euro and Asian markets on a better footing. Also, underestimating local airline/cruiseliner use like Qantas and Jetstar and the internationalisation of the eugeni product this way, was a miscalculation in my view. If we sold 10m eugeni units a year on a recurring yearly basis at $15 pr unit/ how can we argue that $150m in re-occuring Australian sales is insignificant ? The majority of my exporting Australian businesses pursue Aust TGA approval before, licensing overseas.
2 ] Over the last few months there has been some great incisive analysis and so many incisive points raised by all on hc .. but to keep it simple from my end...whats missing in my humble view, from assisting and growing highly successful exporting businesses, is, if you please re-read my threads going back to March 2021 mentioning two fundamental deficiencies in strategy for a $500m mcap company...wanting to be 2bn mcap!!!. 1- we have no lateral / broad management layers of commercial managers both onshore and offshore in the ADO business, for either rapid antigen tests or batteries tech OMG. We needed 5 to 8 commercial/building development managers both onshore and offshore [back in March 21] in charge of tasks like..manufacturing procurement..marketing..sales n distribution and overseas distributor engagement..... you cannot simply have 2 managers Derek n Geoff doing this..for goodness sake..what? answering 100 incoming calls/emails and no cross referrals at executive meetings to chase up sales leads ? The team is simply too lean and always has been. At this point plz re-read Gareths007 recent post on how we raised so much unexplained equity at 26c .....and to do what with it ? ? for what? We have no take on the application of the equity raised and its use, or what it was raised for? no new sales directors and no international sales directors supporting our distributors ? Again in my line of business, this is how Australian businesses grow overseas. You need to spend money and travel overseas to meet your distributors and support them in- market. I know of 2 other bio company directors that have gone to the USA in last 6 months TO cement deals ... Did the Elume ceo go to the USA?
3]- we needed every o/s distributor to be co-funded [IDEALLY AT 50%/50%] by ado for marketing and in market development. What was needed was a 50/50 partnership in shared marketing expenses and market development. [aside from profit share in sales as a incentive] .Intl Sales need fuel and moneys to activate activity.
You see....No one will lift a pencil o/s as a distributor company if they are not co-funded in marketing support and given a subsidy or sales budget to work with. Simples!! It's that simple.!!!! These are the 2 biggest lessons to grow internationally. We have $20m in cash in an ADO bank account doing squat. I'm disappointed as all n more than most because these two factors above are not rocket science but imperative strategic decisions in growing n doing business in o/s markets.We have lost 6 months advantage in a fast paced bio/pharma product mkt.
So, can we reignite ADO and make changes? Yes but do it now !! Throw some money into the business. Hire expertise !!!!Bring it into the business . Get the expertise on planes and visit the markets and distributors. Hire key personnel and get the expertise to go international... I think we may need to broaden the exec team fast and bring in further intl expertise.
Some execs and chairman are great at building a small business to 100mcap. The next $500m is more difficult. The following 500m after that is even more difficult !!!!! This is now a big business as measured by opportunity but not sales to date .....that needs industry and tailored, internationally experienced leaders. Many companies at this level and beyond poach competitors leaders and sales directors.Why have not we? We are too gun shy in my view. The job at this level is to build the team and enlarge it..... not control it through 3 sets of hands as we do now .
I'm critical yes ...but business is cut throat and competitive ..especially on the international stage. We have many competitors now and must execute quickly.
The board needs to evaluate the greatest opportunities now and align ourselves to the opportunity at any cost. Otherwise we will indeed be back to the science and discovery teams in ADO in search for new new products again.
As stakeholders we should demand better from a $500m mc company. Everyone bought at a certain price point to make an investment into THE growth and opportunity offered by ADO. Resting on laurels is not the answer here by the board.
Like in all sports events....and in business....key strategic moments of decision making , make a winning play. Raising at 26c when we are at 40c was a dumb decision. Period.
We have made some mistakes, but it imperative we learn from these mistakes now and become selfless in the business and put the business first.
The ADO business leaders need to become more selfless, understand their value proposition and bring in expertise and grow the team where we have gaps and market failure
keep well everyone
ADO Price at posting:
24.5¢ Sentiment: Buy Disclosure: Held
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