HeraMED Limited (1I4.F) Earnings Call Transcript & Summary

Okay, it's 2:00, everyone. Good afternoon, good evening. Welcome, ladies and gentlemen, to the General Meeting of HeraMED Limited. My name is Ron Weinberger, Nonexecutive Chairman of the company. I would like to introduce you to Mr. David Groberman, your Chief Executive Officer; and Mr. Jonathan Hart, our company Secretary. Also with us today is Mr. David Hinton, nonexecutive director for HeraMED; and Ms. Sivan Sadan, Chief Financial Officer for HeraMED. Apologies are given by Mr. Tal Slonim and Mr. Doron Birger, who are unable to attend the meeting today. As it's now 2:00 p.m. and we have a quorum of shareholders present, I declare the meeting open. Today's meeting has been convened in accordance with the Corporations Act. The notice of meeting was sent to shareholders on the 23rd of June 2021. We will take the notice of meeting as read if there are no objections. With regard to the format of today's meeting, we will run through the formal aspects of the agenda as set out in the notice of general meeting. You will be able to ask questions in regard to each item to be considered as they are dealt with. With the formal matters completed, I will then open the floor to questions. Voting will be on a show of hands unless a poll is called. And as indicated in the notice of the Annual General Meeting, all valid proxy voting instruction forms are intended to be voted by the Chairman in favor of all resolutions unless directed otherwise. Let's now move to the items of business. Resolution 1, ratification of issue of shares. Resolution 1, as set out in the notice of general meeting, is to consider the following ordinary resolution, that for the purpose of listing rule 7.4 and for all other purposes, shareholders ratify the issue of 12,563,215 ordinary shares under listing rule 7.1 to sophisticated investors on the terms and conditions set out in the explanatory statement. Proxy votes received on this resolution are as follows: in favor, 26,903,743; against, 98,461; proxy's discretion, 3,968,107; abstentions, 3,347,881. Are there any questions or comments on the resolution? No. Okay, I now put the motion. All those in favor, please raise your hands. [Voting]

Against? [Voting]

I declare the resolution carried. Resolution 2, ratification of issue of shares. Resolution 2, as set out in the notice of general meeting, is to consider the following ordinary resolution, that for the purpose of listing rule 7.4 and for all other purposes, shareholders ratify the issue of 3,350,966 (sic) [ 13,350,966 ] ordinary shares under listing rule 7.1A to sophisticated investors on the terms and conditions set out in the explanatory statement. The proxy votes received on this resolution are as follows: in favor, 26,888,506; against, 98,461; proxy's discretion, 3,968,107; abstentions, 3,363,118. Are there any questions or comments on this resolution? No. Okay, I now put the motion. All those in favor, please raise your hands. [Voting]

Against? [Voting]

I declare the resolution carried. Resolution 6 (sic) [ 3 ], as set out in the notice of general meeting, is to consider the following ordinary resolution, that for the purpose of listing rule 7.4 and for all other purposes, shareholders ratify the issue of 406,788 options under listing rule 7.1 on the terms and conditions set out in the explanatory statement. The proxy votes received on this resolution are as follows: 26,903,743 in favor; against, 98,461; proxy's discretion, 3,968,107; abstentions, 3,347,881. Are there any questions or comments on the resolution? No. Okay, I now put the motion. All those in favor, please raise your hand. [Voting]

Against? [Voting]

I declare the resolution carried. Ladies and gentlemen, that concludes the formal items of business. I will now open the floor for questions. Does anyone have any questions? No questions? On that note, I would like to thank all of you for your attendance and contribution today. I declare the meeting closed. Thank you very much, one and all. I think there is a question. Sorry. My apologies. There is a question, Jon, Tim. Mr. [ John Barrick ] has his -- has a hand up.

[indiscernible], [ John ]? Are you able -- do you see a Q&A [ thing that you can talk ] and talk about your question?

I can just allow him to talk.

Yes. Turn it on [indiscernible]. [ Thanks ].

All right, [ John ], you can now ask a question. You just have to unmute yourself.

All right, good, okay. You can hear me now.

Yes, yes.

All right, good. So I was interested in your -- the second of your 4 stages. You've essentially completed to get these paid pilots underway. What I'm wondering is how long you expect these paid pilots to run for before they transition into commercial setups for operation.

Thank you, [ John ]. Ron, I guess I'll take the question. So appreciate the question. Obviously I'm a bit limited with the information that I can share, but basically at -- first of all, we have several paid pilots or, to be exact, 2, with maybe additional in the pipeline. So it's different. There's a different time line, but I expect the duration to be anywhere between, let's say, 2 to 5, maximum, months. And we are already in the process of making sure that we are already, from the company side as well as from the partners side, to start growing and scaling the minute that we have achieved the KPIs and the positive acknowledgment of the medical team that they are satisfied with the way that the system works and the way that it's currently integrated into their workflows. So to be short and precise: anywhere between 2 to, let's say, 4 or 5 months.

All right. And then if you do get a go ahead, would there be a capital requirement for you to scale up appropriately?

Tim...

Well -- yes. Go ahead, Ron.

No. I was just going to say, Tim, would you like to answer that question?

Thanks, Ron. Happy to. Listen, I think it's something that the Board considers almost every Board meeting going forward. There's no plans at this point in time to raise capital, but depending on the size and the shape of that rollout, I think most people would acknowledge that it will need further capital to come in, in order to ensure that those rollouts are successful [ a long time ]...

I guess it depends on the scale of the rollout...

[ In terms of quantums ] and amount and timing and all of that sort of stuff, that's yet to be determined.

I can just add that we -- I think that we're all hoping that the size when -- and the pace will be substantial. And that will probably mean that we will need a bit more funding in order to make it a quick and successful launch.

Good. And is it likely that current investors will be able to participate in any such capital raising? Or would that -- would you do that through some broker who has their own clients?

Well, we'd have to depend. It's -- it depend on the circumstances that David has spoken about and the length of the trials, the size of the capital requirements, but almost certainly it will be done through a broker or partners.

Right. So if I'm interested in that, should I be contacting them? Or how should I go about that? David, you and I have spoken before in the past, right. You know [indiscernible] sometime...

You have our very professional and skillful broker here on the line. It's Tim from PAC Partners.

Yes...

I'm quite sure that he'll be happy to communicate with you and anyone else, right, Tim?

Yes.

Yes, exactly right. Listen, I think we're probably preemptive a little bit as to how the business would look to raise money, whether that is it's done as a placement through a broker which -- or whether there is some sort of rights issue or SPP associating to give existing shareholders an opportunity to participate, but my details are on the bottom of the releases, if you want to make contact. And I can certainly let you know in due course.

[ John ], rest assured we're appreciating our shareholders. And we'll do everything that we can in order to make them happy.

Good. Well, so far, you're doing a pretty good job with that, so keep up the good development of the company, please.

I appreciate that.

All right, thank you, [ John ]. It's always good to hear positive words from shareholders. All right, [ John ], if you've got no further questions, and I can't see anyone else's virtual hand up in the air, I think we can bring this meeting to a close. So thank you, everyone. And [ John ], sorry for preemptively closing the meeting.

No. That's fine.

But yes, have a lovely day.

Thanks, everyone.

And good morning, yes. See you.

Bye.

Bye.

Thanks.