Sareum Holdings plc (SAR) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen, and welcome to the Sareum Holdings plc Annual General Meeting 2023. [Operator Instructions] [Technical Difficulty] Chairman, Dr. [Technical Difficulty], the floor yours.

Thank you. Good morning, ladies and gentlemen, and welcome to the Annual General Meeting of Sareum Holdings plc. I'm Stephen Parker, Chairman of the Board. A quorum being 2 members is present, and therefore, we may proceed with the business of the meeting. In common with recent annual general meetings, we've also opened a link through the Investor Meet Company site in addition to the conventional meeting. I'm particularly grateful to those of you who have chosen to attend in-person. We will deal with the formal business of the meeting first and then take questions from the floor in the usual matter of our Annual General Meeting. Following these questions, we will try to cover some or all of the questions posted via the IMC site in the time remaining for the meeting. As is our usual custom, answers to these questions posted on the IMC site will be published on the website in the days following the meeting. We have a lot to get through today, and I'd be grateful if you would follow this procedure and keep questions until the formal stages. I would now like to introduce the Board. Starting on my left, Dr. John Reader, Chief Scientific Officer and Co-Founder of the company. On my right, Dr. Tim Mitchell, CEO and Co-Founder; Mr. Clive Birch, Senior Independent Director and Chair of the Audit and Risk Committee; and Dr. Michael Owen, who is Chair of the Remuneration Committee. I would now like to start the fall proceedings of this Annual General Meeting. The Notice of the AGM was posted to shareholders on the 21st of November 2023. Accordingly, the requisite Notice of the Annual General Meeting has been given. I propose, therefore, with your consent, the Notice of the AGM should be taken as read. Before proceeding with the formal business of this meeting, I will now read the statement, which was issued to the market this morning. The company made good progress in 2023 with its lead program, SDC-1801 with a Phase I clinical trial underway in Australia. SDC-1801, Sareum's TYK2/JAK1 inhibitor, continues to demonstrate promise as a potential new treatment for autoimmune diseases with an initial focus on psoriasis and autoimmune condition affecting the skin. Phase Ia clinical trial affecting -- evaluating SDC-1801 in healthy subjects commenced in May 2023 as a specialist clinical unit in Melbourne, Australia. Following approval by the safety review committee, based on preliminary data from the initial cohorts in the single ascending dose part of the study, dosing began in the multiple ascending dose escalation phase of the study in September 2023. The company has also recently started a food effects study for the compound. This part of the study will inform whether the drug should be taken with food or on an empty stomach, optimizing its potential benefits while potentially minimizing any possible side effects. Full safety data from the Phase Ia clinical trial are expected to be available during the first half of 2024 and provided satisfactory results are obtained and subject to financing and regulatory and recruitment preparations, the company plans to initiate a Phase Ib clinical study, aiming to recruit up to 24 psoriasis patients. This study is expected to be completed before the end of 2024. Also in 2023, the first patent for SDC-1801 was granted by the China National Intellectual Property Administration. This patent safeguards the use of SDC-1801 for medical applications in treating inflammatory or immune disorders. Additionally, after receiving a Notice of Allowance from the Japan Patent Office in November, the patent for SDC-1801 has now been formally granted in Japan. Sareum continues to work on the translational studies [indiscernible] SDC-1802 as a candidate for cancer immunotherapy. These studies are aimed at identifying the most appropriate cancer application for SDC-1802, an important step before proceeding to toxicology and manufacturing studies. In June 2023, the United States Patent and Trademark Office granted a new patent that encompasses the treatment of autoimmune diseases with SDC-1802 and several of its analogues. This expansion effectively broadens the compound's protective reach beyond its primary focus in immuno-oncology. Sierra Oncology, Inc., a subsidiary of GSK plc, has completed the return of the Clinical Study Reports and other associated documents and data related to SRA737 to Sareum's co-development partner, the CRT Pioneer Fund, CPF. CPF is actively engaged in evaluating potential further development opportunities for SRA737. Further updates will be provided as soon as possible. As announced on 3 August 2023, Sareum agreed terms on an equity prepayment facility of up to GBP 5.0 million with RiverFort Global Opportunities PCC Limited. The company received an initial deposit of GBP 2.0 million prior to associated costs on the 4th of August 2023. Sareum drew down an additional GBP 0.3 million as the second deposit under this facility on the 23rd of November 2023. If fully drawn down, the facility, together with anticipated tax incentives of GBP 1.6 million, of which GBP 0.4 million has already been received, should enable the completion of the Phase Ia and Ib clinical development of SDC-1801, expected to be a catalyst for driving shareholder value and for general working capital to quarter 4 2024. In conclusion, the Board remains optimistic about Sareum's pipeline of kinase inhibitors. The focus remains on advancing SDC-1801 into further clinical development, supported by a strong intellectual property foundation and a prudent approach to financial planning. CPF is taking the lead in evaluating potential further development opportunities for SRA737 and further updates will be provided as soon as possible. We would like to thank our shareholders and other stakeholders for their continued support and look forward to providing further updates on progress in due course. Now, before we turn to the resolutions, I would like to say a few words about procedure and remind you that only physical attendees are able to vote today. I will propose each resolution in turn, having briefly summarized its content. I will then read the results of the votes received. The directors will not answer questions relating to the individual rights of shareholders. Any shareholder who wishes to raise such a question to communicate with me or Dr. Mitchell by e-mail following the meeting. I shall move on to the formal business of the meeting. We'll now recite the resolutions. The full text of each of the resolutions is set out in the Notice of Annual General Meeting, a copy of which was posted to shareholders on the noteholders and is on the company's website. Resolutions 1 to 7 were proposed as ordinary resolutions, each requiring a simple majority of the votes cast to be in favor in order to be passed. Resolution 8 is proposed as a -- 9 is proposed as a special resolution requiring a majority of 75% of the votes cast to be in favor but to be passed. Each resolution received a total of 4,992,202 votes, which represents 7.11% of the total shares outstanding. Resolution 1. I propose Resolution 1 on the Notice of Annual General Meeting as an ordinary resolution to receive and adopt the report of the directors and financial statements for the financial year ended the 30th of June 2023. Proxy votes have been received as follows: in favor 4,955,805, against 33,480, withheld 2,917. I will now put the resolution to the meeting on a show of hands. For all those in favor, please raise their hands. [Voting] Thank you. Those against, please raise their hands. [Voting] Thank you. Does anybody wish to indicate an abstention? [Voting] No. Thank you. In that case, I declare the resolution please passed by the necessary majority. Resolution 2. I propose Resolution 2 in the Notice of Annual General Meeting as an ordinary resolution to receive and adopt the Remuneration Committee Report for the year ended 30th of June 2023. Proxy votes have been received as follows: in favor 4,797,240, against 187,995, withheld 6,967. I will now put the resolution to the meeting on a show of hands. All those in favor, please raise their hands. [Voting] Thank you. Any against, please raise your hand. [Voting] Thank you. And anyone wish to indicate an abstention? [Voting] No. Thank you. I declare the resolution carried by the necessary majority. Resolution 3 in the Notice of Annual General Meeting is the re-election of Dr. Tim Mitchell, who retires by rotation under Section 93 of the Articles of Association and who, being eligible, offers himself for re-election as a Director. Proxy votes have been received as follows: in favor 4,723,539, against 256,139, withheld 12,524. I will now put the resolution to the meeting on a show of hands. For all those in favor, please raise their hands. [Voting] Thank you. Those against, please raise their hands. [Voting] Thank you. I declare the resolution carried by the necessary majority. I'll now pass the chair to Mr. Clive Birch, who's the Senior Independent Director for the next resolution.

Good morning, ladies and gentlemen. Resolution 4 in the Notice of the Annual General Meeting is for the re-election of Dr. Stephen Parker, who retires by rotation under Section 93 of the Articles of Association and who, being eligible, offers himself for re-election as a Director. Proxy votes received in favor 4,569,986, against 399,292, withheld 22,924 of the total votes cast 4,992,000. I'll now put the resolution to the meeting by a show of hands. All those in favor? [Voting] All those against? [Voting] Thank you. And I think that resolution is carried. And I will hand back to the Chairman.

Thank you, Clive. Resolution 5 in the Notice of the Annual General Meeting is to re-appoint Shipleys LLP as auditor of the company to hold office from the conclusion of this Annual General Meeting until the conclusion of the next general meeting at which the financial statements are laid before the company. Proxy votes have been received as follows: in favor 4,855,004, against 92,757, withheld 44,441. I will now put the resolution to the meeting on a show of hands. And all those in favor, please raise their hands. [Voting] Thank you. Those against, please raise their hands. [Voting] Thank you. I declare the resolution carried by the necessary majority. Resolution 6 of the Notice of Annual General Meeting is to authorize an audit committee to determine the remuneration of the auditors of the company for the ensuing year. Proxy votes have been received as follows: in favor 4,867,151, against 86,553, withheld 38,498. I will now put the resolution to the meeting on a show of hands. For all those in favor, please raise their hands. [Voting] Thank you. All those against, please raise their hands. [Voting] Thank you. I declare the resolution carried by the necessary majority. [Technical Difficulty] propose Resolution 7 in the Notice of Annual General Meeting as an ordinary resolution to generally and unconditionally authorize the directors pursuant to and in accordance with Section 551 of the Companies Act 2006 to exercise all the powers of the company to allot shares or grant rights to subscribe for or to convert any security into shares in the company. A, up to an aggregate nominal amount of GBP 878,273; and b, comprising equity securities, as defined in Section 560(1) of the 2006 Act, up to a further aggregate nominal amount of GBP 878,273 in connection with or by way of a rights issue -- sorry with an offer by way of a rights issue; such authorities to apply in substitution for all previous authorities pursuant to Section 551 of the 2006 Act and to expire at the end of the next Annual General Meeting or if earlier, at the close of business 15 months after the passing of this resolution but, in each case so that the company may make offers and enter into agreements during the relevant period which would or might require shares to be allotted or rights to subscribe for or to convert any security into shares to be granted after the authority ends. For the purposes of this resolution, rights issue, means an offer to: ordinary shareholders in proportion, as nearly as may be practicable, to their existing holdings; and holders of other equity securities if this is required by the rights of those securities or, if the directors consider it necessary, as permitted by the rights of those securities, to subscribe for further securities by means of a renounceable letter, or other negotiable document, which may be traded for a period before payment for the securities is due, but subject in both cases to such exclusions or other arrangements as the directors may deem necessary or expedient in relation to treasury shares, fractional entitlements, record dates or legal, regulatory or practical problems in, or under the laws of any territory. Proxy votes have been received as follows: in favor 4,567,808, against 373,843, withheld 50,551. I will now put the resolution to the meeting on a show of hands. For those in favor, please raise their hands. [Voting] Thank you. Those against, please raise their hands. [Voting] Thank you. I declare the resolution carried by the necessary majority. Resolution 8. Given the passing of Resolution 7, I propose Resolution 8 in the Notice of Annual General Meeting as a special resolution, that in substitution for any existing authority but without prejudice to the exercise of any such authority prior to the date of the passing of this resolution, the Board of Directors be and the company are generally empowered pursuant to Sections 570 and 573 of the 2006 Act to allot equity securities within the meaning of Section 560 of the Act, including the grant of rights to subscribe for, or to convert any securities into, ordinary shares of GBP 0.0125 each in the capital of the company, or for cash either pursuant to the authority conferred on it by such Resolution 7 or by way of a sale of treasury shares within the meaning of Section 560(3) of the Act as if Section 561 of the Act did not apply to any such allotment or sale, provided that this power shall be limited to: a, the allotment of equity securities or sale of treasury shares for cash in connection with a rights issue, open offer or other pre-emptive offer in favor of the holders of ordinary shares on the register of members on a date fixed by the Board where the equity securities respectively attributable to the interests of all such holders of ordinary shares are proportionate as nearly as may be practicable to the respective numbers of ordinary shares held by them on that date, subject to such exclusions or other arrangements in connection with the rights issue, open offer or other pre-emptive offer as the Board deems necessary or expedient to the ordinary shares held in treasury, fractional entitlements to equity securities and to deal with any legal or practical problems or issues arising in any overseas territory or under any requirements of any regulatory body or stock exchange or to deal with any matter whatsoever; and b, the allotment of equity securities or sale of treasury shares, otherwise than pursuant to sub-paragraph A of this resolution up to an aggregate nominal amount of GBP 878,273, and provided that this power shall expire at the conclusion of the Annual General Meeting of the company to be held on or before the 13th of March 2025, save that the company may before such expiry make an offer or enter into an agreement which would or might require equity securities to be allotted, or treasury shares to be sold, after such expiry and the Board may allot equity securities and sell treasury shares in pursuant to such an offer or agreement as if the authority conferred hereby had not expired. Proxy votes have been received as follows: in favor 4,573,097, against 368,554, withheld 50,551. I will now put the resolution to the meeting on a show of hands. For all those in favor, please raise their hands. [Voting] Thank you. Those against, please raise their hands. [Voting] Thank you. I declare the resolution carried by the necessary majority. Resolution 9. I propose Resolution 9 in the Notice of Annual General Meeting as a special resolution that a general meeting other than an Annual General Meeting may be called on not less than 14 clear days' notice. Proxy votes have been received as follows: in favor 4,926,142, against 49,243, withheld 16,817. I will now put the resolution to the meeting on a show of hands. For all those in favor, please raise their hands. [Voting] Thank you. For all those against, please raise their hands. [Voting] Thank you. I declare the resolution carried by the necessary majority. Ladies and gentlemen, that concludes all of today's formal business. On behalf of the Board, I would like to thank you all for your attendance and declare the full business of the annual meeting closed. In closing, may I thank you all for your ongoing support during this year, which has continued to present challenges in the sector generally, despite your company's significant achievements in entering the clinic for the first time with a wholly owned compound. The Board will now be happy to try and answer questions from attendees and if time permits from the IMC platform. Before we go to general questions, I've had a request from [ Smith ], who would like to make a statement. So if you'd like to do that, sir? Sorry, sir, do you wish to do so?

I do, yes. Okay. A way of an introduction. [Technical Difficulty] some argue today's AGM is extremely [Technical Difficulty]. I myself [Technical Difficulty] in order to be today. First, I'd like to comment by thanking and complementing the sterling efforts, fashion and dedication, laser-like focus [Technical Difficulty] Chief Scientific Officer, Dr. John Reader. Without whom we would not now find our [Technical Difficulty] strategic key second point in Sareum's development. [Technical Difficulty] i.e., with all these cutting-edge pipeline, several potentially world-class [ securing ], price prolonging, positive [Technical Difficulty] stage clinical development. Now, while client is what underpinned the potential for Sareum, so there is no escaping the significant importance in showing financial platform, in which to building [Technical Difficulty] 2 issues [Technical Difficulty] 2 of them combined choices and subsequent actions are involved in particular management team outperforming for about [indiscernible] being shown significant [Technical Difficulty] in the ordinary shareholding and the legal and rightful owners of this company being totally, financially [ devastated ]. In fact, you yourself, Sareum Board and management, Sareum management team will acknowledge. My opinion is a direct result that your extremely questionable choices, financial management and stewardship of Sareum are now exist the covenant disconnect being scientific development [Technical Difficulty] to the efforts of Dr. Reader and the company is totally abysmal in its current share price corresponding to market capitalization. In truth, it is [indiscernible] the aforementioned that we are today even required to [indiscernible] get funding. Indeed, truly high watering figure of GBP 290 million [Technical Difficulty] capitalization, or 88% share price value as [Technical Difficulty] value in action or rather in action for this [indiscernible] management team and the company's CEO. SAR's development pipeline, in the other words of [indiscernible] science develops funeral by funeral. Let's face it, and all problems saw too many people already dying resulting in the shape of [indiscernible] development of SRA737, along with the [ glacial like advance ] SDC-1802 translational facility. Not to mention the fact one of our former [indiscernible] asset, namely Aurora+FLT3 is now currently anguishing on a shelf [Technical Difficulty], all of which rather brings me around the current role about CEO. The scientific pedigree, professional expertise would I feel the [indiscernible] to serving the company and its shareholders need by relinquishing the role about its CEO, and in so doing being afforded the opportunity to return full-time the laboratory. Concluding [Technical Difficulty] turning to business strategy. So based upon the vast evidence, the SAR management team's track record in conducting licenses [Technical Difficulty] I would like to [Technical Difficulty] alternative business strategy. [Technical Difficulty] namely SAR Board and SAR management team agree [Technical Difficulty] subsequent satisfactory valuation of the imminent conclusion, the current phase of the SDC-1801 trial meeting to [Technical Difficulty] the sale in respect of all Sareum Holdings plc various assets, i.e., both previously mentioned and an additional skill development platform, or were offered in excess of GBP 3.50 per share, which will currently value Sareum Holdings plc [ GBP 250 ] [Technical Difficulty] this is my assertion in [ soldiering ] any genuinely interested pharmaceutical company, private equity investment will then be required to reveal their [ hand ]. I think price becomes an need to sell, the expectation would be if SAR's asset, R&D, highly priced to value somewhat delayed, therefore, the competitive tendering would ensue. With the results of that from being the ordinary shareholders would then be afforded the opportunity to build in order to either accept or reject the offer. With a potential net outcome resulting in timeous and clinical conclusion on disposal of Sareum Holdings plc to a company who has more depth and breadth of scientific expertise, along with the necessary plan [Technical Difficulty] required in order to fully develop Sareum's drug development pipeline [Technical Difficulty]. Many thanks, Mr. Chairman, and my fellow shareholders who are here and listening remotely. So currently taking the time [Technical Difficulty] today.

[indiscernible] excitement as we go forward. Obviously, we need to see some data first. Right. With that, can we just move to -- through the room open to any questions you may have, generally, please.

Mr. Chairman, if I could just ask you to repeat the questions to clarify the questions for those online because we can't hear the attendees in the room?

I will indeed. Yes, sir.

[ Owen from Smith ]. I've got 2 points I'm intending to ask is [Technical Difficulty]. 2 questions I've got. First is regarding SRA737 [Technical Difficulty]. So you mentioned that you would [Technical Difficulty]. We haven't actually had an update on [Technical Difficulty]. Is there anything that you've been [Technical Difficulty]? The second question is regarding [Technical Difficulty] I believe is the best option for the company [Technical Difficulty].

Sure. I just quickly summarize for people online. The first part of the question is looking for an update on SRA737, which of course, is being handled by CPF. And the second was a question regarding the RiverFort facility that was entered into in the late summer as to why we feel or felt that that was the best option going forward for the company. So I'll ask Tim to pick up the SRA737 side.

Thanks, Stephen. Yes, so we -- as you say, we had access to the data room early this year. We've reviewed the data. We haven't found anything particularly unexpected, I suppose, that we didn't see any big gaps in the data. We didn't particularly see any opportunities that we thought we could seize on or take a different approach to. So we've been happy for CPF to take the lead in looking for future development opportunities. So we don't really have any concrete update to give.

No, I've been following, obviously, [Technical Difficulty] publications [Technical Difficulty]. Why there wasn't any statement made in saying that [Technical Difficulty] and that we are now passing to [Technical Difficulty] rather basically aren't negotiating actively [Technical Difficulty]. We constantly come to the AGM [Technical Difficulty] criticism.

So your point is taken. Yes.

I think that we perhaps action [Technical Difficulty].

Of course. Yes, I mean, I suppose we didn't feel it was specifically noteworthy because there was really nothing to report from the data. So we didn't make any particular statement about it. And I think as we've said, it's really in the hands of CPF who are leading the charge on future development opportunities.

[Technical Difficulty]

Mr. Chairman, if I could just ask all the comments from the investors in the room where appropriate can be broadcast because we cannot pick attendee comments up from the online platform at this point. So if you could repeat, that'd be most grateful.

Okay. The point that the shareholder made was that he felt there should have been a more active reporting to shareholders through the year of our conclusions from looking in the data room of SRA737, and we accepted that point. And hopefully, of course, there will be something to report in the near future regarding that drug, and we will certainly do so at that point. So onto the RiverFort facility. Broadly speaking, we're in a position where we needed to balance several different factors at that point, one of which, of course, is the hope that we all have that the SDC-1801 clinical study will come out positive and leads to, hopefully, a rebasing of the share price on the back of that. The other was the state of the markets through this year. And I'm sure many of you are invested in more than just the one company. And you will probably all have had the experience that life on AIM has not been the most fun for most companies through the year. So broadly speaking, it came down to the best outcome by the route that we could take, and that was why we chose RiverFort. We actually looked at 3 different offers of similar products from different firms and the RiverFort's package was clearly the best, which is why we chose that one. Yes, sir.

Did you just look at straightforward placing?

We looked at the -- we were revised by our business that the market was not going to withstand that route or not on terms, which could possibly be acceptable to come and sit down with our shareholders. Yes, sir.

The one point that I really want to [Technical Difficulty] communication. Over the past 30 years, I've worked with hundreds of both drivers the health and public companies. And the one huge difference between the 2 is communication. Even though the company becomes public, it has an obligation towards the shareholders to communicate to their [Technical Difficulty] things that is not required when it's public.

Absolutely.

So it becomes 50% of the job of management to communicate. Now, the communication over the past few years that I've been just following the company is that, there has been a complete lack of communication [Technical Difficulty] front is the Investor Relations part, which is communication to the market, communication for shareholders, relationships with brokers, analysts and so on. And this, with all due respect to the Board, it cannot be initiated from the Board. It has to be the role of the Investor Relations person to take the lead on that. And whether this is a regulatory issue or not, has to be decided by the Investor Relations person not the Board of Directors. And they have to have the background and the knowledge to do that. You have spoken about the pipeline of compounds that we don't really know anything about it. If the pipeline is meant by SDC-1801, SDC-1802 and SRA737, that's not really a pipeline. These are already compounds that everybody knows about. And there isn't really anything new there. If there is a pipeline we need to know about it as shareholders [Technical Difficulty]. The other thing is the communication of what is being done in the company. No one in this room, probably 99% of us, don't know what the management or the Board are doing day to day. So one of the things that we need to understand as well is the communication to the market cannot just be when an event happens, but also update -- regular updates to the shareholders who are like Mr. Smith said, the rights of owners of the company. So this is really key as a starting point, the communication to the market and shareholders has to improve drastic because at the moment, simply coming out with a piece of news that says something that really is like, this is our results. These are the resolutions that have been passed is not good enough. The second thing is the communication is the PR part of this. Now, all the advancements of that you're having with the clinical trials with whatever you're working on, this cannot be done in a dark room somewhere and no one hears about. This has to be in the news. It has to be in newspapers. It has to be in a public eye, not to the shareholders, not to the market, but in everywhere. We want to see Dr. Mitchell, Dr. Reader in their white lab coats in the news -- on the 10:00 news talking about a cancer curing drug that we're working on. It doesn't have to be -- really, it has to be driven by the proper PR initiative that is being driven by a [indiscernible] rather than just the scientific part as Mr. Smith [indiscernible]. So these 2 parts of the communication, they have to be very clearly driven and not driven by the Board, but driven by professional in their teams within these 2 distinct parts of the communication. Otherwise, it's like giving a Rolls-Royce to a 15-year-old who can't drive, and they would crush it. It is really you have an amazing product with amazing potential that is currently being mismanaged, and it is not communicated properly to anyone outside of this room. So this is really -- please, I beg you to really consider the communication part as a priority in everything from now on because otherwise, it is very theoretical and really, it is pointless to keep talking about shareholder value and all of these things because if you have a great product that you're not selling, it doesn't really matter what you have. And one last point with the market conditions. I work in the market. And this is something that's my job. And to be saying that the market conditions are not suitable for raising funding and so on, that's not true. The only thing that is different is the communication to the market because if you're not communicating properly to the market, the market is seeing you as a dead board. If you're communicating properly and the perception of the public towards the company is positive have a market that is unlimited. So this is -- again, it goes back to the communication part. That's it. That's all the [ questions I had ].

Thank you. Forgive me, I will need to summarize. I've good summary very briefly from what you said, but it's not to reflect but we're not paying attention to it. Broadly speaking, the shareholder made points about both the IR and PR approach that the company has taken. And that is something which we will certainly continue to pay attention to, and we are actually sitting in the offices of our PR firm, and we have a relatively newly appointed Head of IR at the table here. So we are taking steps in the right direction. The nature of the company in this sector, of course, is that, we live or die by the data. And everybody knows because of the nature of a public company that we are in a trial that is coming towards its conclusion. And therefore, it is very hard to have somebody entering conversation prior to those data being released because obviously, it's sort of to pick up your analogy with the Rolls-Royce. You might know that the next model is coming, and therefore, you're not going to have a conversation about the current one. But I take the point, we will do our best resources permitting to read I gave you in that regard. I should also say, of course, that as an AIM company, we are -- we have very strict guidelines to what we can and cannot say in the way of actual material to the market. And we have a nomad, and we have brokers who do the rules backwards, so to make sure that we're not [ traversing ] those rules. So as much as it will be lovely to have an occasional fan fair and such like. We also have to stay within the rules that are set by the markets. But yes, I'd take that point. Is there another question, please? Sorry. Roger?

Yes. Mr. Chairman, I noted last year, your salary went up by 15%. Now, this is -- I do want to have a wink about that, and I have absolute confidence in the remuneration committee. But, I mean, it does suggest kind of a shifting of -- or more active involvement by you and a shifting of the role that members of the senior leadership team, including yourself plays. Can you expand a bit on how are you being more active over the last couple of years and perhaps as originally anticipated?

I would say that what's been referred to as the management team, which I guess, essentially is the 3 of us on this side -- the left side the same as I'm looking at you are working very closely together on a pretty much a day-to-day basis. As a non-exec, of course, my role is of its nature and as needed, but the perception has been that the need has grown over that period. Last year, I attended the JPMorgan conference on behalf of the company, and I should be doing so again in 2024. So I do take an active role as being something -- I would say, I'm a visible part of the team.

And Mr. Chairman, could I -- maybe it's appropriate to make any comments on the introductory statement of the shareholder. If you don't think is appropriate, that's well understood.

As I acknowledged, it's right to speak. We will absolutely take it under advisement. He was kind enough to share a copy with us so we can see what the words are, and the points that he's making. So we will certainly pay close attention. I think you wanted the question, yes.

Yes. Just on the -- just looking at the funding, I find it some of these are that we're in a position we're now in. I wrote to the Board when our share price and our money was over 8.5p and it reached you, not respond to the opportunity of raising fund at that time. And you didn't do anything. Then should we be surprised like our CEO is on record conclusion of Investor Meet Company when a shareholder asks about share profit. And rather dismissively to [Technical Difficulty] share profit. I thought some way in my mind to explain the situation that we're now in to find ourselves with funding, which was more akin to that which we were exposed to 10, 12 years. We have the high net worth, which we're built on that, but we didn't. On the subject of remuneration, if I may just take you back through the midst of time to [ RNS #044R ] on the 8th of December 2016, Directors Remuneration of General Meeting. Further to the announcement despite [indiscernible] 245727 SRA737 thrown out [Technical Difficulty] September 2016, and anticipated to generate for the company of [Technical Difficulty], together with a share of sales royalties under the company's final results for the year ended 30 of June 2016. On the 2nd of November 2016, the company announced its [Technical Difficulty] in summary. In light of the significant anticipated returns [Technical Difficulty] and extraordinary scale resulting from the licensing transaction. The company exposes to award [ each directors ] to Mitchell and Dr. Reader one of [Technical Difficulty]. In addition, [Technical Difficulty] propose the annual salaries of each directors of Drs. Mitchell and Reader be agreed at [Technical Difficulty] 54%, representing increases of 50% [Technical Difficulty] the company [Technical Difficulty] GBP 2.5 million -- $2.5 million [indiscernible] nothing beyond that. And the compound is in return [indiscernible] the last 12 months. [Technical Difficulty] you provide a little bit of clarity around the financial issue there? How salary has been renegotiated? How salary has been repaid?

I'm going to need to summarize for the room. The question went back to an RNS stated at the end of 2016, looking at a rebasing of salaries for Tim and John on the back of the licensing deal, which CPF negotiated with then ProNAi renamed Sierra for the drug. And so, the question was around effectively what has happened since, I guess. And the answer, I mean, I'm not going to go back into the ancient history, other than to say that, that decision was taken because prior to that, Tim and John had each agreed to a halving of their salaries at the time when the company looked even -- look to be very -- or it's [ be met ]. And it seemed to be a reasonable -- I'm a firm belief if you're going to make that kind of sacrifice for the company, then when times get better, then there should be a reward in it as well. So that's effectively that the 2016 decision was based on events that has gone on prior to that. So -- but I say I don't want to break over what is now a 7-year-old history. So one in the middle and then...

Sure. It's on the [Technical Difficulty].

So I can give a history of that.

You got to repeat that.

The question is to Mike Owen, whether he's still involved with the CPF Advisory Board?

I was originally a member of the Scientific Advisory Board. When the fund became fully invested, I was asked to sit as an observer on the so-called investment adviser as an observer simply to provide some sort of continuity to science advising the investments. I have -- well, 2 things. Firstly, there has not been a meeting that I've been invited to on that Board for at least 2 years, point one. And point 2, I have been recused from any and all correspondent documents, verbal or otherwise discussions about [indiscernible]. My conflict is, obviously, therefore, they strictly on putting up award [indiscernible]. So all I know is what has come from discussions of Tim, in particular with the [indiscernible].

Perhaps I should just quickly summarize Mike's answer as well because he's a long way from the mic. And that is that, Mike is no longer on the Scientific Advisory Board. He does sit on the Acquisition Disposal Advisory Board, but has never taken part in any discussion or seen any papers regarding SRA737 from the CPF side. So his own exposure to what's been going on with SRA737 is via the Sareum Board.

So just for the avoidance of [indiscernible] I've had no unofficial in the [indiscernible] conversations with the [Technical Difficulty].

[indiscernible], do you have something else?

Right. Yes. It's just a comment on [ business ] point about -- comment about the share price. As a shareholder, I would be worried if the Board of Directors actually is worried about the share price. What I would be concerned about is, them not taking care of shareholders value, which is 2 different things. The share price and have different things affecting it like market conditions like sentiment, like anything can happen. The share price is not necessarily a reflection of what the shareholders see as the value of the company. But the shareholder value, this is where it comes into -- like that's the concern, and this is where my concern comes in with just communicating what you're doing as the management to the shareholders. If we are aware of what they're working on, maybe would be a bit more comfortable share [indiscernible].

Any more questions in the room? Otherwise, we'll go to the IMC submitted ones.

Just picking up on that very point about communication. If we go back to the COVID-19 research [Technical Difficulty] extremely. On the 1st of July 2021 [Technical Difficulty] high net worth. The [indiscernible] that came out of that Dr. John Reader, who was [indiscernible] positive in the results from our COVID-19 research projects are very encouraging, provides clear evidence of the potential of SDC-1801 to reduce the [indiscernible] response in 2019. We are keen to progress this project to the next phase [Technical Difficulty] our option on the best way [Technical Difficulty] in parallel with the broader SDC-1801 [Technical Difficulty] providing update on that progress [Technical Difficulty]. So that was based on the GBP 174,000 dividend front, obviously, looked [indiscernible], the comparative about business [Technical Difficulty] but they're nothing.

Yes. Sorry, just to repeat this. So the question regarding SDC-1801 in COVID or associated cytokine storm activities.

Yes, I think the approach we've taken, and I think those comments were made pre-vaccination and to a large extent, if the COVID problem is not solved, it's still very much with us, but it's less of a critical issue at the moment. I think it's fair to say. The approach we've taken that is that, we're carrying out Phase Ia trial in healthy volunteers with SDC-1801. That will give us the safety data and the [indiscernible] about potential doses that we could carry forward if there is a resurgence of COVID or other respiratory diseases that might respond to our molecule. And I think the other issue to just bring up about that is that, clinical trials in COVID patients now would need to be very large and very expensive. And we're not in a position to carry out a trial like that at the moment. So we'd be looking to work with a partner if we were to take them forward in COVID.

The data emanating from that on the [indiscernible] for our potential licensing partners.

Yes.

It's probably just worth adding to that, that, of course, subsequent to that, the government decided that agile funding will be restricted only to drugs which could actually be used in the market within 12 months. So -- and obviously, at the stage, we were in at time, but that wasn't going to happen. Yes. Matthew?

Yes, [indiscernible] management team, why they feel they've not been able to attract institutional interest [indiscernible] regarding name. However, a company does come on the investment money just raised over [indiscernible] placing, attracting life science investments. I wonder why we not given -- we are in a position, what we attract investors [Technical Difficulty] back that what we do order has [Technical Difficulty].

The question is, why do we still not have any institutional investors given where the company is? My view of that, quite simply, is that, institutions are probably not going to pay much attention until they see the Phase Ia data. We're talking about the Rolls-Royce with a new model coming out again. But hopefully, that situation will change once we're able to share those data. Yes, sir.

Do we like to see any movement on SDC-1802 [Technical Difficulty]?

Is SDC-1802 going into [ top ] studies next year? John?

Yes, I'll pick up on this. I mean, we're still working on the translational studies. We're really trying to understand exactly how the molecule works and therefore, which cancers are most likely to respond positively. Again, it's a molecule so that we can select patients who are likely to benefit. That would add a huge amount of value in a Phase I trial because obviously, Phase I on the cancer therapeutic is done in patients. So we're trying to build that understanding of how the molecule works, where it's likely to be most effective. It's still ongoing. I hope we're in a position to push forward with it next year, but I can't guarantee it. It's going to be dependent on the results. Yes.

You does seem to like [Technical Difficulty] year. And as a shareholder, I just find that [Technical Difficulty] shareholders. So [Technical Difficulty], but then it seems to go [Technical Difficulty].

Yes. Shareholders made the comments that we apparently made limited progress or at least communicated limited progress over the last 2 years. But it's a fair comment. I think the -- one of the issues with communication in general for us is maintaining commercial confidentiality. So yes, we're in a competitive business. We have to be careful about the information that we give out that could be useful to the competition, frankly. So that does limit in what we can say to some extent. But I take your point. I think the other thing is clearly, SDC-1801 is our priority program, and the bulk of our resources are going towards our program at the moment, perhaps at the expense of SDC-1802.

Yes, sir.

[Technical Difficulty] we're asking for best communication and by [Technical Difficulty] about confidentiality, et cetera. [Technical Difficulty]. But you've actually said things today, but could play out there, i.e., the SRA737 review there [Technical Difficulty] mentioned about SDC-1802. So these are things that we want to [Technical Difficulty] comments earlier on. I really like to wait for the next meeting [Technical Difficulty], this is how we're going to move forward. I'm not sure we call it proposal or make a very valid point. And not this is for you guys to wait for this and say, yes, we are doing well. We know you are to come up with [Technical Difficulty]. We're just sitting here and watching [ SP ] diminish and yet you don't [indiscernible] anything about it. That's my request to you. [Technical Difficulty], that's my opinion. I really like you guys to step up.

Okay. And again, this is a comment from the floor. On the theme of increasing communications and perhaps sort of a little bit more as and when we can. Matt, I think you had a question?

Yes. It was on SDC-1802. So is the studies are ongoing and active or are they stored? I think [Technical Difficulty] clarity around that would be really good.

Just for our experiment ongoing.

Okay, sure.

With that, I see that we've reached 11:00 and that reflects the time is out. So we won't be able to deal with questions that have been posted on the IMC site. We will provide answers to those and post them in the usual way and notify through RNS when those are available, they will be on our website. But in the meantime, I'll just thank all of you for making the effort of coming, whether it's near or far, it's always good to see you. It's always good to hear your comments. But at the same time, since your ongoing enthusiasm for the science in this company, and I very much hope that the events of the next year will lead us all to have some more smiles on our faces when we meet this time next year. So thank you all.

Thank you, Mr. Chairman and to the Board of Sareum plc. Please ask investors online, not to close the session. We're now automatically redirect you to the opportunity to provide your feedback in the Board can better understand your views and expectations. This may take a few moments to complete, but I'm sure it'll be greatly valued by the company. On behalf of the management team of Sareum plc, thank you for attending today's Annual General Meeting, and good morning to you all.