Mad Paws Holdings Limited (MPA) Earnings Call Transcript & Summary

[Audio Gap] In person, and we have a number of people virtually joining us as well, and great pleasure, I think, 2 or 3 years to have an in-person AGM for many of us. I'm Jan Pacas, Chairman and Co-Founder of the company, and I'll be chairing the meeting here today. So it is now 10 a.m. We have quorum, all the directors here present and so I declare the meeting open for business. And I can confirm that the meeting has been properly constituted. In opening for '22 AGM, I'd like to introduce my fellow directors and the Board and management team of Mad Paws Holdings, who are in the following attendance. Mike Hill, Non-Executive Director; Josh May, Non-Executive Director; Vicki Aristidopoulos Non-Executive Director. I hope that I got the name correctly because I'll be reading it out a few times today. Justus Hammer, CEO, Managing Director and Co-Founder; Graham Mason, Chief Financial Officer; Alexis Soulopoulos CEO, New Business and Co-Founder of company; Howard Humphreys, Executive Director; Belinda Cleminson, our Company Secretary. And we're also joined today by Barbara Richmond from Crowe, not virtually, but in-person, who is our company auditor. As the structure of the meeting today, I'll kick off with the Chairman's address. We'll then hand over to Justus, who will provide a business and trading update, where the business is, and we'll then proceed to the official and formal business as the notice of the meeting. So let me kick-off with my address. '22 was a transformational year for us as a company as we continue to execute our vision to become Australia's leading pet platform. Our goal is and always has been to provide a wide range of products and services to improve the lives of pet owners and more significantly their pets. Even while we faced some difficult market conditions as everyone else, caused by the large downturn towards the end of the financial year, we remain focused and carried out our growth strategy, resulting in record results. The team worked very, very hard and has achieved significant milestones to scale our e-commerce and subscription revenues to complement the growing marketplace revenues. We've also successfully completed the acquisition of Pet Chemist with a number of Pet Chemist's team members in our room here today, which extends our offering into the pet health space, a market which is now worth over $4 billion in Australia alone. And with only 14% of customers spend currently spent online, we expect this sector to see significant accelerated growth over the next couple or future years. With our portfolio offerings, Mad Paws marketplace, our e-commercial and subscription segments, including Mad Paws Toys & Streets, Mad Paws Food and Mad Paws Health, and they all are digitally connected for the end user, we've become more relevant in the eyes of the customer and consumer and are touching lives of Australia's pets at multiple points in the life cycle. We're now in a very strong position where we can further leverage a lot of synergies from those offerings, consolidating our brands and creating a very seamless user experience while at the same time driving efficiencies and further cost savings. And our strategy is working. Mad Paws has achieved record numbers for customer acquisitions and record low customer acquisition cost, getting the business closer to our main goal, which is achieving profitability towards the middle of 2023. One thing we're particularly proud of is the fact that even though our focus has shifted towards achieving profitability earlier that didn't come at the cost of slowing down our top line growth. The full year of '22, we recorded full revenues of $10 million and even increasing our growth rate in the first quarter of this financial year, where we achieved again 17% growth quarter-on-quarter, and we exited the quarter with a revenue run rate of $23 million. All we did that and the team did that while improving our marketing spend as a percentage of revenues and reducing our EBITDA loss towards a negative 27% of revenues. From the first days of the founding of our company and Alexis, Justus and myself have been here since day 1, we believe that this is a significant opportunity in the Australian pet market, we've only begun to scratch the surface. With profitability clear within our sites while still maintaining a very, very high level of growth, thanks to structural tailwinds like accelerating shift towards online offerings, the significant increase we've seen in pet ownership in COVID as well as shifting consumer trends towards the humanization of pets, which results in owners spending higher dollar amounts on their pets. Looking ahead, we're very confident that the financial year '23, especially with the momentum that we currently have and the start of the trading again in this quarter, and you'll hear more from Justus and we continue to execute our growth strategy, building Australia's leading pet ecosystem, capitalizing on all the synergies ahead of us. In closing, I'd like to say a big thank you and deep gratitude to our dedicated team, to everyone here, but also everyone logging in online and every employee of the company to their dedication and extraordinary efforts every day as well as to Justus and Alexis and the entire team here again, for the passionate leadership and the executive team for the significant contributions. I appreciate the advice of my fellow Directors and the backing of all our shareholders. Finally, I want to express a big thank you to our customers, subscribers, [ shareholders ] for their support. Very much look forward to ongoing that we are at the very beginning of building something substantial. I'll now hand over Justus for a business update.

Thank you, and welcome, everyone. Nice to see a couple of people in person. So I'll give you a quick update on FY '22. And then I'll also give you an update on how we've been trading at the beginning of Q1 -- Q2 this year. So just quickly to reiterate, we exist to enable to the fullest. And our vision is to become the most trusted and convenient brand for all pet-related needs. Now obviously, a fairly big claim. We started a little bit smaller and Alexis, Jan and myself thinking about the must be a better option than out there. And that's how we started working on the marketplace on the pet services marketplace where you can now find nearly 40,000 pet sellers in your local area to look after your pets when you're on a holiday go back to work. Now -- this is not where we stopped. And I think Mad Paws is a -- the brand Mad Paws we selected quite intently because we wanted to always add additional revenue streams to the marketplace. And we've been on that journey now for the last 2 years. We first added Dinner Bowl to the mix subscription business in the pet food space. We then added Waggly, which is Toys & Treat subscription business. Later on, we acquired Sash which is the start of our curated e-commerce. So this is really when we want to find products that are viral, high-premium products that we can cross-sell into our existing customer base. And then last but not least, the acquisition of Pet Chemist in Q4 last year, which was a perfect fit for us from a Mad Paws perspective because we know that our customers are animal nuts. They really love the animals that share about them more. They want to make sure that they keep them healthy and living a nice and long life for as long as possible. And you can see we've been quite successful with that. We're now at 295,000 customers on the platform, paying customers on the platform, and we are now at 660,000 or past that now, 660,000 cumulative bookings for the whole group. And along the way, we've picked up some iconic partners. One of them is Qantas, was not just a commercial partnership for us where we have a commercial relationship with them acquiring customers, but also a shareholder in Mad Paws. And so how do we get there? Certainly, we had some very positive trends and tailwinds over the last couple of years. And even though COVID was first a shock for the business because nobody was traveling, obviously. But long term, this is a huge opportunity for the business, and we've seen the upside of that over the last couple of quarters. Now it came kind of in twofold. One was there's obviously significantly more pet ownership now than there was before COVID, and I'm sure everyone knows somebody got a pet throughout COVID. But it's not just about the number of pets, which has obviously skyrocket the industry and the size of the industry, but it's also about the relationship that people have with their pets. Times are going with the pets sitting in the front yard and get some leftover food. People are now treating their pets like their own family. And so this is kind of giving us that double whammy over the last year and a bit, where we've really seen customer numbers grow very, very strongly, but we also see people spending much more on their pets. So the average spend per pet now significantly higher than before COVID. Last numbers we had is about $3,000 per year spend in Australia on dogs and about $2,100 spend on cats, right? So this is a huge market [indiscernible] say, it's not a COVID event that's going to go. You're not going to turn off your subscription now that COVID's over and you're going back to the office. Those pets are at home and people care for them. And people will care for them even if times get a bit tougher, right? That's what we've learned in some of the last turn -- recessions that people, first of all, will start spending money on themselves before they start spending money on the pack. So we feel in a very good position for anything that happens from a macro perspective. And so what's the result of that? You can see that here, we've really achieved significant scale now. And we've gone from $3 million revenue in '21 to $10 million in '22. If you look at it from a pro forma perspective, that would have been already $15 million, including Pet Chemist for the whole year. And already at the end of Q1 FY '23, we were at a revenue run rate of $23 million and nearly $60 million in GMV through the business. So pets significant to us because it puts us in a good position where we now have a lot more levers to get the business to where we want to be, and Jan's mentioned this before, profitability is certainly our key focus and what the business is driving for now and having the scale that we have now and the growth that we're seeing now gives us a lot more opportunities to get to that point. Now a quick update on current trading. A couple of highlights from Q1. You might have seen them already. But just to reiterate, we've achieved $5.4 million in revenue for the quarter in Q1, that's 300% up, which is obviously also an effect of acquiring Pet Chemist. But even from an organic growth, we've seen significant growth, which is shown in our run rate now, $23 million at the end of Q1 and a really strong start into Q2, and I'll talk about this in a second. But I think overall, the biggest achievement for the company and for the team, who has done an amazing job is around achieving those kind of growth numbers while also improving on all the metrics towards profitability. And you can see that on the right here, we've got percentage market, and as a percentage of revenue, has dropped significantly from Q1 to Q2 from 19% to 16%. And we see that kind of improving going forward as well as our EBITDA margins significantly improving. And one main reason for that is the marketplace. We're outperforming with the marketplace itself has been profitable now for 2 quarters, trading at about 20% EBITDA margin, and we see that improving even more so over the next couple of quarters and particularly going into Q2, which we call our golden quarter for the marketplace has always been the biggest growth quarter for the business. Looking at those results and the growth that we've seen from a revenue perspective but also the improvements that we've seen from an underlying EBITDA perspective, we are reaffirming kind of our breakeven target for mid-2023. And this is obviously a goal that we've pulled forward. And we've done a lot of work around cost management and being even more concerned about where we put our dollars. We spent a lot of time in diving down into the numbers and understanding of where do we get investment back the quickest, where can we spend $1 and it comes back the quickest. So that's what we've done over the last couple of quarters. And I think that the results speak for themselves that we've seen those improvements from an EBITDA perspective. Yes. And we were still a long way to go. But I think the -- one of the promising things about this quarter, in particular, is just from a marketplace perspective, as I said, the golden quarter. We've got huge cash inflows from a setup perspective, obviously, the biggest time to book any services, and so we're predicting that this quarter is going to be at or around breakeven from a cash flow perspective. So it'll put us in a very good position at the end of Q2 with an improved EBITDA and increased revenue levels to get to our goal, which is the breakeven towards mid-2023. And just to give you just a quick highlight of kind of how well we started into the quarter. We've really seen accelerated growth. You can see that on the right-hand side that orange or salmon -- maybe color is 2021. So you see how kind of the marketplace accelerates normally into Christmas. At the beginning that is an effect of the easing COVID restrictions in 2021, where we've seen a lot of growth in pent-up demand coming out. And then you see the growth tapering off a little bit to then really accelerating towards Christmas. And now if you see -- if you look on the green line, we've seen over the last week already accelerated growth for the marketplace, which is very comforting. 70% up year-on-year from a weekly GMV number. And even from a forward-looking number, we're looking very positive. We're sitting at about 72% up of our forward booking value in December. So there's a lot of growth to be had and it puts us into a very, very promising position from a cash flow perspective. And then also, all that -- the work that we've done on reducing our CAC or customer acquisition costs about half over the last year for the marketplace has really driven kind of one of our key metrics, which is lifetime value to CAC, and that has increased from 3 to 4, just about a year, 1.5 years ago to now over 7x, which obviously shows the profitability of the marketplace. And continuing on to the e-commerce and subscription space. We're really kind of ready to accelerate growth. We've seen the first great signs in Q1 of Waggly and Pet Chemist growing particular Pet Chemist, I think after the integration into the business. We saw the first green sprouts coming out in terms of growth, in terms of cross-sell and accelerating the growth for Pet Chemist and that's on an accelerated now in Q2. We've had a $1 million month for Pet Chemist in October from a revenue perspective, and revenues are now up 20% in the first 4 weeks compared to -- for Q2 compared to Q1. So let's -- that's obviously what we want to see, and we see still huge potential for Pet Chemist growing even faster, integrate them into the network even more and grow that business. And again, achieving those results with customer acquisition costs that are the same or even lower than what we've seen pre-acquisition. So that's very promising. And then Waggly has seen particular again, over the last couple of weeks, a significant growth even though from a seasonal perspective, it's sometimes a little bit lower if we go back in the last couple of years, but we're seeing significant growth from a customer acquisition perspective, at record low customer acquisition costs which again helps us from an EBITDA perspective and particularly for Waggly based on cohorts, we still see 16 months average tenure with our customers for that business, so very strong lifetime values, which again will help us to get this vertical towards profitability as well. What we're focusing on as a business, I've already talked about the marketplace. The marketplace kind of works quite mechanically. Our brand now puts it -- it's very easy for us to kind of forecast what's going to happen. And we now believe is we've got a pull. Data is the key asset that we have and what we're most interested in improving on. We've always been talking about getting better -- having more transactions means we have more data, means we can get better matches from a sitter and owner perspective. But what's even more important now is not just getting it right from a sitter and owner matching perspective, but also making sure that we work with the right sitters in the right areas, which will help us, again, in keeping retention of the marketplace high and driving the profitability of the marketplace over the next couple of months or years. From a wider perspective, cross-selling is what we've talked about. This is kind of part of our investment thesis and win is such a great opportunity, and cross-selling between the different verticals we're running is essentially that we make this work. This means our customers [indiscernible] cost going to go down, and the business is going to be more profitable than stand-alone businesses. And we've done a lot of work on the data layer. I talked about in the last quarter about this, integrate every single vertical now on a data layer, where we can tell the -- what the customer has done on any of our verticals at any time and give the marketing team a great opportunity to target those customers. On a personal level and again, increasing conversions. Next step for us is the identity layer. So there's a single sign on for all our platforms, loyalty, going to lay a loyalty layer over the whole overall verticals, making sure that people stay within the ecosystem. And then last but not least, payments. Payments, might take a little bit longer, but it's an opportunity for us from a cost perspective going into a single payment provider which means there will be cost savings just from a volume perspective, but then even more important, making it easier for customers to have a single checkout option and adding products from all our verticals at the same time and check out in a single go. Now one of the things we're very excited about is kind of upselling in margins, particularly at top is something that -- we've been testing quite a bit, particularly for Waggly. And we've seen some very great early successes. For example, we're now offering an additional toy when people go through a sign-up process for Waggly. And we're seeing up to 30%, so the average now is probably about 25% of new customers actually adding an extra toys to the Waggly box. Now you can imagine this has a big impact on that business overall because, a, from an average revenue perspective, box value goes up, but from a margin perspective even more so. We're adding extra toy at a high margin with no additional freight costs. So that's great from a consumer perspective, but it's also great for us as a business, and we're going to take that to the next level, where we're going to be able to add products not just from a single vertical, but you're going to be able, at some stage to add products to your Waggly box from Pet Chemist or any other part of the business. which, again, is going to help us to increase average basket value, but also the margin per box. And last but not least, e-commerce efficiencies. We're working on a lot of process improvements that are mainly focused about making our customer experience better, but then also improving our cost base and obviously margins for the business. And we do know that I've already talked a little bit about the with data. We don't know that to drive the network effects, right? So -- there was -- it started with the marketplace where we were obsessed with the data we get, more bookings means more data for us means we have better matches on the marketplace. And again, not just about the matches, it's also about identifying the best to us from a retention perspective. But now obviously, it's also about identifying the products that customers are in need of and putting them in front of them at the right time. We've got a lot of data about our customers and more important about their pets. We're not just know name, age, but we also know health conditions they might have and all that helps us to come up, improve our cross-sell capabilities within the ecosystem. But also use that data as a first-party data. And I think commercial strain kind of acquisition channels we might have, whether it's Facebook or Google. Yes. And then big part of that whole journey is also our new brand strategy and the consolidation of our brands under the Mad Paws brand. So if you go to one of our brands at the moment, it still feels like we're running 5 brands. And a lot of our customers would not be aware that it's all under the Mad Paws umbrella. And so we're going to bring this all closer together, and you can see this as an example here on how this might look. We're obviously testing these things. So it won't look exactly like this. But everything will come under Mad Paws umbrella and a Mad Paws brand. Marketplace customers are going to be much more aware of kind of the other offerings that we have. And it won't feel like it's a third party trying to advertise to you, but it feels like it really comes from the Mad Paws group. They will still have different look and feel to reflect kind of the different verticals of branded entities, but it's going to significantly help us again with our overall cross-sell. And part of that is also our commitment to sustainable future. I mean, I think this is not just something that we have to do. It's something that really came from within the company as well. Lots are our employees or -- and it's not -- again, it's not something we have to do. It's also, I think, a good business decisions. Our customers, I think, very much will appreciate any kind of efforts in this space. We said we're going to be carbon neutral by 2025. I think you can probably do better than this, but we'll push hard. We're already offsetting -- we're already offsetting carbon for 3 of our verticals at the moment, and we're working hard to reduce our carbon footprint for the whole company, but we're not stopping at the carbon footprint, we're also looking at single-use plastics, recycled materials and so forth. So we're doing a lot of work to get better at that. And again, I think our customers are very appreciative of these efforts. And then the last one is just to reiterate, I've talked about these things a lot, but these are the tailwinds that we've kind of experienced over the last couple of years. We've already talked about the number of people that are out there having pets and that has increased significantly. We've talked about pet premiumization to people spending more on the pets. All that together means that we've got in our industry to tackle that is around $30 billion in size. So a very sizable compound, very sizable industry, and at the very beginning of tackling that, I think there's a huge growth for us, we have from scratching the surface in terms of size. We get sometimes in the marketplace whether we're kind of to the end of that, of where we're at, certainly not. I mean, we've got some 200,000 customers in the marketplace now. There's 6 million households in Australia. So there's a huge amount of growth to be had. And again, thinking about this, particularly on the -- from a marketplace perspective, we're not just competing against commercial options, but we're also competing at your family and friends options, right, because you might not want to have to give the dog to the for 2 weeks, Mad Paws gives you a much better option here to keep the family happy. Justus already mentioned the shift from offline to online. This is -- this is obviously a shift that's here to stay as well and has helped us significantly over the last couple of months. And the pent-up travel demand is certainly something that's real. We've seen that in the growth numbers last Christmas already, and we're seeing today similar accelerated growth even now Qantas has just come out with some numbers that they're going to increase the international travel capacity over the next 2 quarters significantly, which again is going to help us because there's still some growth for us to be had from average number of days booked per booking. We're still below pre-COVID times here. So again, this is another growth driver for us aside from just more customers. And I've talked about the balance sheet already $3.5 million at the end of September with everything we're going through now, the golden quarter we're going in with the marketplace, a huge amount of cash inflow we're getting from a perspective. We feel we're going to be in a very similar position at the end of Q2, which again puts us in a very strong position to get the business to where we want to be, which is cash flow profitability from an EBITDA level at mid-2023. And with that, I'll finish.

Thank you so much use Justus for a great overview, and thank you for everyone -- to everyone for making are what has been presented in the slides and the progress has been amazing. So with that, we now move to the formal business as set out in the notice of the meeting. the notice of the Annual General Meeting was forwarded to everyone or to registered members on October 17, and is to be taken, I assume as a -- the voting on all the resolutions will be It will be conducted by for the purposes of the poll, I appoint Adrian Atkinson at Atomic, the company's share registry, who represent summaries of the proxy forms received act as returning office and will conduct the poll. The persons entitled to vote on this poll are all shareholders, representatives and of shareholders and proxy holders who hold yellow voting cards. If you are attending in more than one of those capacities, you have been issued with as many voting cards as you have separate capacities. If anyone believes they are entitled to vote on this poll in any capacity, it doesn't have a yellow voting card in respect thereof, please raise your hand, and a member of our registered team will assist you. At the appropriate time, I'll ask that you mark your vote for the resolution on the yellow voting card. If you're a shareholder and wish to cast all your votes for a resolution, please place a mark indeed for, against or abstain for the next -- to the next resolution. If you wish to split your vote, please write a number on the portion of box you wish to cast in the corresponding for, against or abstain boxes. Please note that the sum of the split votes must not exceed your total holding. If you're a proxy holder, a summary of the votes to which you're entitled has been attached to the voting card. In this summary, votes includes discretionary votes. These are yours to cast at your best discretion. If you wish to cast the discretionary votes, please place a mark in the corresponding for, against or abstain boxes. If your summary of votes doesn't have any discretionary votes, you don't need to mark your voting card, and we'll simply need to hand it to the returning officer at the end of the resolution. After all the solutions have been read and voted upon, please place it in one of the ballot boxes that will be circulating the room. Are there any questions about the process? It looks like we have no questions. So I declare the poll open. [Voting]

Proxies have been inspected and all those validly lodged have been accepted. Proxies have been received -- representing 114,280,538 shares, or [ 14 -- 3.95% ] of the issued capital of the company. All undirected proxies or open boats that have been -- have nominated the Chairman of the meeting as the proxy would be cast in favor of the resolution in the Annual General Meeting. So first of all, financial statements and reports. The first item of business in the consideration of the annual financial report of the company for the financial year ended June 2022, together with the director directors report, remuneration report and auditor support. Copies of the '22 annual report were made available on the company's website or if you elected to receive a hard copy, a hard copy has been sent to you. The financial report and the report of directors and the auditors are now laid before the meeting. There will be no vote on this item and is this a discussion item only. The company's auditor for '22 financial year Barbara Richmond from Crowe Australia is present to take questions relevant to the conduct of the audit and the preparation and content of the independent auditor's report. Are there any questions or comments on the financial report or the reports of the directors and auditors? Looks like no questions. Are there any questions or comments on the management of the company? We have no questions. Are there any questions relevant to the conduct of the audit and the preparation and content of the auditor's report to be put to the auditor? No questions. We will now proceed to the resolutions that are in the AGM. So resolution #1, adoption of remuneration report. To consider and if thought fit to pass with or without amendment resolution 1 adoption of remuneration report as an ordinary resolution. Who wish to discuss the resolution, please raise your hand. Any question coming in? So we move to the next proxies in relation to the [indiscernible] stream. And I now put the motion. Please mark instruction so a resolution on your yellow voting card. So Resolution 2 is as follows. To consider election of Howard Humphreys as Director. To consider and if thought fit to pass with or without amendment, the resolution to election of Howard as Director as an ordinary resolution. Again, if you wish to discuss this resolution, please raise your hand. Thank you. The proxies proceed in relation to this resolution are on the screen. I now put the motion. Please mark your voting instructions for this resolution on your yellow voting cards. Okay. Resolution 3 reelection as Michael Hill, as Director. If consider and if for fit to pass with or without amendment, resolution 3, reelection of Michael Hill's Director as an ordinary resolution. If you wish to discuss this resolution, please raise your hand. Okay, looks like no questions coming in. The proxies received in relation to this resolution are again on the screen, and I now put the motion. Please mark your vote instructions that this resolution on your yellow voting card. Next resolution 4. ASX listing rule approval of future issue of securities to consider and if thought fit to pass with or without amendment resolution for ASX listing Rule 7.1A, approval of future issue of securities as a special resolution. If you wish to discuss this resolution, raise your hand. Looks like no questions coming in. And the proxies received for this resolution on the screen. And I now put the motion. Please mark your vote instructions for this resolution on your yellow voting cards. Next resolution approval of issue of shares to Michael Hill, a Director of the company, to consider and if thought fit to pass with or without amendment resolution 5, approval of issue and allotment of fully paid ordinary shares in lieu of director fees to Michael Hill as an ordinary resolution. If you wish to discuss the resolution, please raise your hand. It looks like no questions coming in. The proxies received in relation to this resolution are again on the screen, and I now put the motion. Please mark your voting instructions for this resolution on your yellow voting card. Okay. As the next resolution relates to myself, I'll now hand the chair of the meeting to you.

Thank you. Resolution 6 is as follows: to consider, and if thought fit to pass with or without resolution 6, approval of issue and allotment of fully paid on their shares in new lieu of Director Jan Pacas as an ordinary resolution. If you wish to discuss the resolution No questions. The proxy received in relation to this resolution are on the screen. I now put the motion. Please mark your voting instructions for this resolution on yellow voting card. I will now on hand the meeting back over to Jan.

Thank you, Justus. Next resolution 7, approval of issue of shares to Justus Hammer, Managing Director and CEO of the company. To consider and if thought fit to pass with or without amendment resolution 7, approval of issue and allotment of fully paid ordinary shares in lieu of Director fees to Justus Hammer Managing Director of the company as an ordinary resolution. If you wish to discuss this resolution, please raise your hand. If you -- the proxies received in relation to this resolution can again be seen on the screen. I now put the motion, so please mark your voting instructions for this resolution on your yellow voting cards. We're going to next resolution, resolution 8, approval of issue of shares to Josh May, the Director of the company. To consider and if thought fit to pass, with or without amendment, resolution 8, approval of issue and allotment of fully paid ordinary shares in lieu of Director space to Josh May, the Director of the company as an ordinary resolution. And if you wish to discuss this resolution, please raise your hand. Looks like no questions coming in. The proxies again received in relation to this resolution can be seen on the screen. And I now put the motion. So please mark your voting instructions for this resolution on your yellow voting cards. Moving to the next resolution, resolution 9, approval of issue of shares to Vicki Aristidopoulos, Director of the company. To consider and if thought fit to pass, with or without amendment, resolution 9 is about the approval of issuing allotment of fully paid ordinary shares in lieu of director fees to Vicki Aristidopoulos, a Director of the company as an ordinary resolution. If you wish to discuss this resolution, please raise your hands. It looks like no questions coming in. So again, proxies can be seen on the screen and now put the motion. So please mark your voting instructions to these resolutions on the yellow voting cards. Moving to resolution 10, approval of issues of shares to Howard Humphreys, a Director of the company. To consider and if thought fit to pass, with or without amendment, resolution 10, approval of issuing allotment of fully paid ordinary shares in lieu of Director fees to Howard Humphreys as Director of the company as an ordinary resolution. If you wish to discuss this resolution, please submit your questions via the Q&A or raise your hand. It's like no questions coming in. Proxy received again in relation to this resolution can be seen on the screen. Now I put the motion. Please mark your voting instructions for this resolution on your yellow voting cards. Okay. Moving to resolution 11, the approval of issue of shares to Managing Director of the company. To consider and if thought fit to pass, with or without amendment, resolution 11 is approval of issue and allotment of 205,674 fully paid ordinary shares to Justus Hammer, the Managing Director of the company as a ordinary resolutions. If you wish to discuss this resolution, please raise your hand or ask in Q&A. If no questions coming in. Again, proxies received in relation to this resolution can be seen on the screen and now put the motion. So please mark your voting instructions for this resolution on your yellow voting card. Moving to resolution 12, approval of issue of options to Justus Hammer, Managing Director of the company. To consider and thought fit to pass with or without amendment, resolution 12, approval issue and allotment of 226,220 options to Justus Hammer, Managing Director of the company as an ordinary resolution. If you wish to discuss the resolution, please raise your hand or ask in Q&A. The proxies in relation to this resolution are on the screen. I now put the motion. Please mark your vote instructions to the resolution on your yellow voting cards. Moving to resolution 13, approval of issue of shares to consider and if thought fit to pass, with or with amendment, resolution 13 is about the approval of issuance allotment of up to 9 million fully paid ordinary shares to [indiscernible] trading as an ordinary resolution. If you wish to discuss this resolution, please raise your hand or ask in Q&A. Proxies again received in relation to this resolution are on the screen. I now put the motion. Please mark your voting instructions for this resolution on your yellow voting card. That concludes resolutions to be voted on today. Has everybody completed the yellow voting cards? So I now invite the Atomic -- the staff of Atomic Share Registry to collect voting cards. Any other business? Is there any other business that can lawfully be go forward and discuss? There being no further questions, I'd like to all shareholders, all people present for their attendance and will declare the meeting closed. Results of the poll will be announced on the website as soon as possible. Thank you very much for coming to our AGM.