NSCI AGM23 Jun 2015 09:37
AGM
Myself and Baron Day Trading (baron83 on LSE) attended the AGM yesterday in Kensington.
Firstly Dr Martelet (CEO) gave a short presentation
-Recently taken over as CEO and will be implementing a review of the portfolio to be completed by September
-Disposal of non-core assets
-Focus on 5 core companies: Wanda (remote diagnostic software); Vortex (indentifcation of Circulating Tumor Cells for cancer diagnosis); Glycotest(Non-invasive tests for liver cancer); Glucosense (wearable glucose monitoring); G-Tech Medical (wearable tech for gastric disorder diagnosis)
-Hugely increased and much more regular updates to the market
Sir Richard (Chairman, former Glaxo CEO) chaired the meeting and ran through the resolutions proposed, all of which were pretty much formalities and all passed unanimously.
He then asked for questions.
Baron and I raised the issue of lack of communication to the market. All of the board, and especially Dr Martelet, strongly agreed that communication had been lacking in the past and this would be addressed. We specifically mentioned lack of broker research notes and it was confirmed that several would be published in the near future.
I raised the point of liquidity and the board confirmed they were aware of the issue due to the extremely small free float. As mentioned in the RNS, they will be looking to fundraise at some point in the next 12 months, however they will obviously be hoping to do so at a much higher share price and with participation from the existing II holders.
We then spent some time talking to the board one on one.
Observations:
The board seemed extremely engaged and all were willing to chat to Baron and I regarding the points we'd raised. Dr Martelet seemed especially aware of the need for an increase in newsflow and PR from the company in order to raise the company's market profile.
Dr Boyce-Jacino (head of US operations) and David Gough (Head of Europe) were also very willing to chat and seemed to be confident that interest would increase in the near future.
I believe that Baron and I were the only two private shareholders present. The rest were representatives from the big IIs that hold most of the shares. Think this reflects the nature of the shareholder base and absolutely tiny free float. I suspect that the concerns of retail investors have never really been raised to the board in past past, but they certainly have now! Consequently I think we should see a big push to get the story out there which should hopefully lead to greater volumes traded and result in a higher share price.
Lastly, and most importantly, there were loads of free sandwiches!
Conclusions
-Board is fully aware of shareholder concerns, believes the company is significantly undervalued and will act in our interests
-Newsflow will increase significantly near term. Wanda and Vortex still on track for near term commercial launch.
-Will be a greater effort made to explain the NSCI st
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