5 questions lodged at 2025 Linius Technologies virtual EGM
August 14, 2025
Below is the text of the 5 written questions submitted at the Linius Technologies (LNU) virtual EGM held via the Automic platform on August 14 2025 to approve 15 share issue resolutions including to Andrew Demetriou. Market cap $6.5m. Latest balance sheet shows $67.2m of accumulated losses and negative equity of 742k. See notice of meeting and voting results. There was no early disclosure of the proxies. Multiple resolutions were withdrawn a week before the meeting.
Q1. Resolution 1 question: "Approving the issue of 350 million shares at the lowest possible price on the ASX of 0.01c is, frankly, ridiculous. Why haven't we done a share consolidation before today and how many different "professional and sophisticated investors" have stumped up the 350k in cash for these 350 million shares being approved in resolution 1? Is any of their professionalism or sophistication going to assist with the operational turnaround of this business which has so far wracked up $67.2 million in accumulated losses?"
Answer: Question wrangler Joe Rinarelli did some minor tweaks to this one and initially suggested reaching out privately later to answer the question. Chair Gerard Bongioro said the share consolidation was a case of "when not if" but now wasn't the right time. He also said some of the recipients were actively involved in the business now. Watch video of exchange via Twitter.
Q2. Resolution 2 question: "Could a representative from our share registry provider Automic comment on how much more it will cost shareholders to maintain a separate options register. And do the options lapse if the attached shares are traded or transferred to a third party?"
Answer: Question wrangler Joe Rinarelli took this one and said the number of recipients was small and the cost negligible. The chair later added that the options didn't lapse if the shares were sold or transferred. Watch video of exchange via Twitter.
Q3. Resolution 3 question: How many different investors have taken up these convertible notes? Also, 20% seems a very steep interest rate. Can you name any other ASX listed boards which have agreed to a convertible note with such a high coupon? Finally, does the issuance of these convertible notes complicate in any way the sensible course of doing a share consolidation so that our shares no longer trade at the lowest possible price with no buyers as has occurred in recent weeks.
Answer: The chair Gerard Bongiorno defended the pricing saying it was reasonable in the circumstances and clarified that the notes allowed for a future share consolidation. Watch video of exchange via Twitter.
Q4. Resolution 10 question: "I understand the logic of recruiting the former CEO of the AFL to our board given our plans and line of business. Could Mr Demetriou please comment on the amount of time he intends to allocate to our business in return for the estimated $75,000 non-cash annual fee that he is receiving under the terms of resolution 10. Is he confident that the equity he is being issued will grow in value given what he knows and has seen so far during his time with the company?"
Answer: Not asked which was reasonable given the item had been withdrawn. Watch this video of how they prematurely ended the meeting via Twitter.
Q5. Why was the voting turnout so low and what issues were raised by the shareholders who voted 20% against resolutions 3 and 4? Do you know who objected and why?
Answer: Not asked, which was unreasonable of Joe Rinarelli given neither of these items had been withdrawn. Watch this video of how they prematurely ended the meeting via Twitter.
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