3 questions lodged at 2025 Codeifai virtual EGM

Q1. The latest accounts show that we have accumulated losses of $92.3m and the market is today valuing the equity at $6.4m, a picture of financial distress which partly explains the need for this 13 resolution EGM to approve various equity issues. As a relatively new shareholder, could the chair, CEO or someone with corporate memory of the company briefly summarise where all the money went and what past directors and executives should have done differently to deliver a better experience for long-standing shareholders?

Answer: The chair/founder John Houston attempted to delegitimise the question by disclosing I'd only bought the minimum parcel on December 1 but at least he read the question unedited and then he offered a very detailed response, including that their biggest mistake was assuming brands would spend money via QR code to protect themselves from counterfeits. They wouldn't. Asking teetering tiddlers what they did wrong is always insightful. Watch video of exchange via Twitter, plus these final comments about the latest Codeifai pivot towards “spearheading a new era of AI, quantum computing and cybersecurity”, as was laid out on the opening slide in the presentation lodged with the ASX. That's using all the latest buzz words, but not a lot credit or cash in the bank after a decade of losses.
Q2. It is not good practice to have to email the company to gain access to this EGM. Next time we have a shareholder meeting, could the chair undertake to include details of access arrangements in the notice of meeting sent to all shareholders, removing the requirement for the additional step to gain access?

Answer: The chair John Houston claimed it was important to ensure non-shareholders couldn't access the meeting. It's a public company with 2,600 shareholders, for goodness sake. I was literally the only shareholder who requested access. Having blown $90m trying to counter counterfeits, they sure weren't going to let any counterfeit shareholders into this EGM. Founder Houston then passed to company secretary Guy Robertson, an experienced public company director, who claimed it is normal ASX practice to have to email a company to gain virtual EGM/AGM access. This is rubbish. I've done 1300 AGMs/EGMs since 1998 and the Murdochs at News Corp and Fox Corp are the only cowboys who do this, but they're domiciled in Trumpland where transparency and AGM access is much worse than in Australia. Watch video of exchange via Twitter.

Q3. With all these resolutions to issue various forms of equity, why haven't we proposed a share consolidation issue given our shares are trading below 1c and we have a ridiculous amount of shares on issue relative to the market cap. Will we put up a share consolidation resolution at the next AGM?

Answer: The chair/founder John Houston explained that they had done a previous share consolidation. He currently owns more than 1 billion shares. I paid 0.11c for 45,455 shares on December 1, as he helpfully disclosed to the meeting, but this $505 investment was already down to $410 by the time of the EGM with the only buyers on EGM day offering 0.09c with zero trades. I was the only shareholder invited to vote via the Zoom poll so was doing just that rather randomly as he answered this question. Watch shaky video of all this happening via Twitter.

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