FX Glad to know that it's official that I am not a moron. I'll make sure I draw the relevant post to Mrs MM's attention.
WRT the director concession that things could have been done better in the past, this was my overall impression following the Melbourne meeting. I went back to my notes but confess I can't identify a set of words that were used. Further my recollection of what was said semi formally around the table and what was said in the subsequent discussions while people were milling about before departure is also a little hazy.
However I formed the impression that it was conceded things could have been better communicated after the "grandfathering" problems which prevented the take up by large players for first world applications hit home. Likewise the more recent diversion of resources to (and concentration on) PrIME, with the consequent slowing of progress with the development of SpermSep. I also read the SPP and desire to avoid further dilution as a gesture or acknowledgment of appreciation for long suffering loyal shareholders.
I think the material difference is that the Board and management would see the cause of the shareholder pain being the general difficulty and long torturous path of any small cash starved company bringing biomedical product to market, whereas some here appear to believe there has been a cynical and calculated plan to transfer wealth to directors and executives by not running things so as to achieve the stated aims of the company as quickly and efficiently as possible.
K, As best I remember I made an initial small investment in the company in or about August 2008. I had not heard of either Gradipore or Life Therapeutics before then.
My attention was initially drawn by something I read about SpermSep on a domestic flight. I continued to read whatever I could find and purchase small parcels as the GFC continued and the price (mostly) fell. I had intentionally decided to have between 25% and 40% of my SMSF's Australian equity allocation invested in speculative stocks for as long as I have no medium term plans for retirement. I currently have eight such stocks having off loaded two at a profit yesterday. NSP is currently my biggest position in both biomed stocks and specs. The biggest parcel of my SMSF's holding was acquired at less than 3 cents in February in the year when RB's recalcitrant shareholders were said to be dumping stock.
Incidentally I hold CTN in my SMSF core portfolio and plan to progressively transfer the proceeds from sale of my specs to that and an unlisted Australian Ethical Small Companies Fund as I eventually start to plan to cease work completely....hopefully at 75 in another 16 years!
If the directors are to be criticised it should probably be for over promising and under delivering. I like to think I have a realistic expectation of how hard it is and how long it takes to succeed with small start ups. Sometimes even when everybody behaves well things can turn bad. In the late 1980s I was a non executive director of a start up small rural brewer. We had a great business plan, fantastic product and arguably the best qualified brewer in the country (who we brought out to Australia under an assisted business migration scheme). Our company was trading profitably in a difficult environment when the bank demanded additional security. We wouldn't as non executive directors agree to provide them with unlimited personal guarantees and as a result they sent in receivers and sold us up for a fraction of what it cost to put there. It's interesting now some 20+ years later to reflect how our imported employee has changed the face of brewing in Australia, how the plant we installed has been progressively upgraded and how the project has continued for almost 30 years to provide employment and draw tourists to our small rural town....the money lost was a good investment in my commercial education.
The point I am trying to make is that we all learn as we progress and I have lost count of the number of my successful business clients who have paid a high price for their entrepreneurial flair (sometimes more than once) before succeeding. If I am correct in my assessment of our key people then the lessons of the past will have been learnt.
If I am wrong in that assessment then I guess I will have to admit to the sage quality of FX's post signature block quotation.
Kind regards,
MEM Price at posting:
4.0¢ Sentiment: Buy Disclosure: Held
(20min delay)
