5 questions lodged at 2024 Atturra hybrid EGM

Q1. Why do you need to approve tranche 1 of the placement when you already had capacity to issue these shares under the 15% rule? The fairest way to raise capital is via a renounceable pro-rata offer but seeking this approval sends a message that you are potentially going to do yet another selective placement which dilutes retail shareholders. Please confirm that you won't do another placement before next year's AGM.

Answer: The question wrangler broke this into two and chair Shan Kanji said any further placement would be a matter for the board. Watch video of exchange via Twitter.

Q2. How many different shareholders participates in the tranche 1 placement and how thorough was the exclusion process run by our share registry provider Computershare to ensure none of them voted on this placement refresh resolution? Were they warned not to vote in advance and did any placement recipients try to vote and have their votes ruled ineligible and excluded?

Answer: Not asked because the executive chair Shan Kanji said all other questions would be taken off line and responded to individually. The CEO tried to call a couple of times later in the day. Watch video of the farcical EGM wrap via Twitter.

Q3. If Shan wanted to participate in the placement, why didn't we do a pro rata renounceable capital raising where he could have either participated or sold his entitlements in a competitive book build to the highest bidder? Calling special shareholder meetings to approve non-pro rata share issue to the founder is not a good look and best avoided. Why didn't the board push back against the investment banks pushing the quick and easy placement solution which is poor governance, dilutes retail and doesn't respect the property rights of all holders.

Answer: Not asked because the executive chair Shan Kanji said all other questions would be taken off line and responded to individually. The CEO tried to call a couple of times later in the day. Watch video of the farcical EGM wrap via Twitter.

Q4. $39.7 million is a big cheque for our founder and executive chair Shan Kanji to come up with. Could Shan please comment on whether he has had to pledge some or all of his shareholding to external financiers to come up with the cash, or does he have enough external resources to finance this investment without doing this? It is not ideal to have big margin loans on individually held material shareholdings in public companies because these can attract short selling pressure or decisions that are driven by short term price considerations.

Answer: Not asked because the executive chair Shan Kanji said all other questions would be taken off line and responded to individually. The CEO tried to call a couple of times later in the day. Watch video of the farcical EGM wrap via Twitter.

Q5. Shouldn't debate on this resolution be chaired by an independent director given that Shan has an interest in the item?

Answer: Was planning to lodge this when they got to Shan's resolution but they terminated the meeting after just 9 minutes and never got to it.

Copyright © 2024 The Mayne Report. All rights reserved

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