Ann: Ikon Legal Action - Decision, page-14

Soud

You make Cellmid’s case very well, so I will paraphrase your post closely.

Management recognised its limited marketing skills and therefore committed $939K to engaging an agent (Ikon) who purportedly did have them. In the event the money was wasted. The Company had nothing. Because the ads were ineffectual they had to discontinue using them after 3 weeks. The ‘screw up’ was engaging an agent who didn’t produce what was expected.

This not only was Cellmid’s case for challenging payment, but that it considered this to have resulted in financial cost was the basis for it launching a counterclaim.

It appears that the Company subsequently has learnt from its mistake with the engagement of Color Collective in the US.

With respect to the share price on Monday and beyond, I’m sure it will continue to be determined by retail investor ignorance as it has been for the past 11 years until the shareholder profile moves inexorably towards a higher proportion of institutional holders, with retailers gradually selling out at a self-determined loss.

Proof positive of this later point has just arrived on cue.