3 questions asked at 2023 K2 Asset Management AGM

Q1. How much rent are we paying for the space at level 44 of 101 Collins and given the share price performance, shouldn't we move to cheaper accommodation?

Answer: K2 have recently moved from level 32 to level 44 at 101 Collins Street at the expense of 101 building management. K2 had entered into a 5 year lease term to commence in February 2024 when asked to vacate the floor to allow for a large corporate to take the entire floorplan. The recent office move involved significant incentive and K2 have not been out of pocket at any point. The incentives offered were very commercial and ensured that operations of the business were not impacted, given the floorspace that is require is small, this became cost effective for 101 to rehouse the business. Another key requirement following our rapid growth in RE and administration has been to deliver additional security and segregated information barriers. This is best practise in this pillar of the business. There have been additional staff as part of the recent rapid growth and the new office location can now accommodate. Also, it is important that we offer our staff a pleasant work space to enhance culture across our three business pillars. Currently K2 are under a rent-free period as part of the overall incentive.

Q2. Has there been any opposition to the proposed placement capacity expansion in the proxy voting and are we planning to utilise the capacity?

Answer: There has not been opposition to the proposed placement outlined in the notice of meeting. As discussed at the meeting the Company may issue equity securities under the 10% Placement Capacity for the following purposes:

i. as cash consideration, in which case the Company intends to use funds raised for continued operating expenditure or for general working capital; or

ii. to refresh its existing shareholder base and/or facilitate new investors.

Q3. A zoom hybrid is difficult to participate in. Will we return to a hybrid format next year where shareholders can either attend at our head office or participate virtually?

Answer: We will take this feedback on when looking at how meetings will be held in the future. We have aimed to provide the most transparent format possible while keeping costs at a minimum. The format that meetings are held has evolved in recent years, but we aim to provide shareholders with the best possible solution. We find zoom a very transparent and cost effective form of communication. We will take on your feedback and look to explore other suggested platforms and the additional costs.

Copyright © 2023 The Mayne Report. All rights reserved

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