4 questions lodged at 2025 Nanosonics hybrid AGM

Q1. The latest ASIC report summarising net short positions across the ASX300 shows that 8.46% of our total shares on issue are currently sold short, which makes us one of the 20 most heavily shorted stocks on the ASX. Has this influenced our decision to launch today's $20m buyback and do we know which of the 5 disclosed substantial holders in the annual report - Selector, Pinnacle, UBS, Maurice Strang and Yarra Capital - have a policy to lend their stock to short sellers? Do we know the identity of the short sellers, have we observed any tactics by short sellers to try and drive the share price lower and how are we generally handling this overall situation?

Answer: The chair Steve Sargent and CEO Michael Kavanagh both said they just focus on running the business, not the short sellers. Watch video of exchange via Twitter.

Q2. I submitted a version of this general question last year but it was ignored, so let's try again. Could the CEO please summarise the extent and breadth of engagement he has with analysts, brokers, fund managers and institutional investors after each 6 monthly results release to the ASX? How does that compare with what the company does for its circa 15,000 retail shareholders. Have you thought about having an investor day and, if so, would you consider inviting retail shareholders to attend? Which retail brokers cover us and are we happy with the quality and breadth of analyst coverage across the retail broker market?

Answer: Was finally asked after a bit of nagging. The CEO Michael Kavanagh went through the usual extensive investment banker facilitated meetings that occur for the big end of town investors each six months and also said an investor day would happen at some point. Was also a useful explanation of the analysts and how they engage. Watch video of exchange via Twitter, plus these additional comments by the CEO.

Q3. Thank you for once again running a best practice hybrid AGM and also for disclosing the proxies early with the formal addresses. Also well done for achieving strong support on all resolutions, including on this remuneration report item. Last year the chair committed to embracing scheme like voting disclosure in the poll results revealing how many individual shareholders voted for and against the rem report, but then you failed to deliver. Please do it this year to provide a better gauge of retail shareholder sentiment and insight into the chronically low retail shareholder participation rate. Others have already blazed the trail as this was a voluntary disclosure initiative adopted by the likes of Qantas, ASX, Suncorp, Tabcorp, Myer and even our own share registry provider Computershare in recent years. You've got the data, so why not let the sun shine in and reveal how many individual shareholders voted for and against this rem report?

Answer: Not asked despite repeated requests.

Q4. Thanks for disclosing the proxy position early. Why was there a 5% protest vote against Gerard Dalbosco on the proxies? Did one of the proxy advisers recommend against and if so, what was the issue?

Answer: The chair Steve Sargent loved the question and took aim at proxy adviser ISS for its "ludicrous" new policy recommending against any director which previously worked for the external auditor. Gerard was a long term partner at EY which has been auditing Nanosonics for 6 years. Watch video of exchange via Twitter.

Copyright © 2025 The Mayne Report. All rights reserved

• share
  Share
  • 
    Facebook
  • 
    Twitter
  • email
    Email
  • print
    Print
  • link
    Copy Link
  • cancel
    Cancel