5 questions lodged at 2025 Althea Group virtual EGM
April 8, 2025
Below is the text of the 5 written questions submitted at the 16 minute Althea Group Holdings (AGH) virtual EGM via Computershare on April 7 2025 to approve 10 capital raising items, including placement and manager options. No protest votes. See notice of meeting. Market cap $11.8m on EGM day. Question wrangler Adam read all questions in full, except the last one which was ignored. No EGM webcast provided.
Q1. The latest audited accounts show we have $90.3m in accumulated losses and net assets of just $349,000. However, there is clearly some value given the market cap is $11.5m. Where did the $90.3m go and how much harder did this loss-making history make it to win investor support for tranche 1 of this placement?
Answer: The chair Vaughan Webber said he is very excited by the recreational marijuana opportunity in the US. Watch video of exchange via Twitter.
Q2. I generally don't like seeing under-writers paid with equity. What is our company's history with Taurus, who owns Taurus and why did we opt for this partial scrip payment model? When paying with scrip rather than cash, did we have to make a larger nominal payment because of the risk that the equity could go to zero?
Answer: The chair Vaughan Webber said it was a tough capital raising environment but Taurus have been doing a great job with the company since last December. Watch video of exchange via Twitter.
Q3. Could CEO Joshua Fegan please summarise his overall history in terms of buying or selling Althea Group shares and the history of past incentive issues, including whether they have lapsed or been exercised? Did he think about taking a larger share of this latest capital raising?
Answer: The chair Vaughan Webber didn't let Joshua speak for the whole meeting. He might not have even been on the call, but Webber said he'd never sold any stock during the 7 years he has been CEO since the 2018 float at 20c. Watch video of exchange via Twitter.
Q4.Could Josh comment on whether the Trump tariffs play and associated global equity markets sell-off is likely to negatively impact the company and make achievement of these performance rights more challenging. Is he worried about the tariffs and a potential trade war. How exposed are we to tariffs in the US?
Answer: The chair once again took this and said they are "monitoring the geo-political situation" but are not planning on selling recreational marijuana across the US-Canada border. Watch video of exchange via Twitter.
Q5. Thank you for offering shareholders access to this meeting via Computershare's excellent online meeting platform. Will a webcast of the full meeting be made available on our website to the 9,000-plus retail shareholders who did not tune in live?
Answer: No asked as they never dealt with general business and also prematurely closed the poll because I had time to vote on the 10 items whilst also juggling lodging 5 questions.
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