6 questions lodged at 2026 Recce Pharmaceuticals (RCE) virtual EGM

Q1.Given there was a 25.6% vote against the re-election of John Prendergast at last year's AGM along with an overwhelming 80% remuneration report defeat, was it really sensible to put up another resolution today related to our executive chair and his financial arrangements with the company? Has there been a material protest vote against this resolution and could John please summarise his equity ownership history with the company, including any lapsed option grants?

Answer: The executive chair John Prendergast handed over to another director who blatantly skipped over this question so there was no debate on this resolution. Watch video of censorship via Twitter. In the end this resolution was defeated with 54.6% against (see these poll results) so my inkling was proven right and we never heard about his ownership history in the company but it is clearly much less than several major shareholders who don't like him.

Q2. Why did we wait until 7.20pm on the last possible day, August 31, to release our latest $15m loss which lifted accumulated losses to $101m and left us with negative equity of $16.7m. This doesn't make sense when you look at today's market cap of $115m. As a relatively new shareholder, could somebody explain the history of our seemingly overly conservative accounting treatments? Does the chair believe having negative equity contributed to the SPP falling short and requiring this resolution?

Answer: Recce CEO James Graham stood by his decision to be one of the last loss-makers to reveal on the last day of the reporting season and chair John Prendergast said having negative book equity doesn't hurt its capital raising efforts because investors understand the bigger picture. Watch video of exchange via Twitter.

Q3. How many of our nearly 4,400 shareholders contributed the $2.4m in SPP applications and how hard did we market the offer in order to try and avoid finishing with a shortfall? Also, thank you for at least offering retail shareholders a chance to participate through the SPP. Do retail shareholders automatically receive the piggyback options or do they need to pro-actively fill in a form to get on the register? This has been the problem with piggyback options at other companies because many retail shareholders don't know how to play the game.

Answer: It was just 170 of the circa 4,400 Recce shareholders who stumped up the $2.4m in the recent SPP and as for whether regular shareholders have to fill in a special form just get the piggyback options, well, you try and work that out after watching this multi-director answer. Watch video of exchange via Twitter.

Q4. How are relations with our two largest shareholders Gavin Brown and Graham Melrose, who were both listed as owning about 13% in Monday's annual report? They presumably contributed to the 80% remuneration strike at last year's AGM. Have they participated in the latest capital raising and were they excluded as participants or eligible to vote as non-participants on this placement resolution? What is their history with the company and how are relations at the moment?

Answer: This was a hopeless answer from question wrangling chair John Prendergast, who just said one is deceased and relations with the other major shareholder are good. Watch video of exchange via Twitter. Turns out, relations are clearly very poor because when these poll results were released to the ASX, it showed all 6 resolutions were defeated so clearly a group of major shareholders decided to ambush the board, rendering the EGM pointless as nothing was approved.

Q5. I lodged 3 written questions as last year's AGM but wasn't able to stay and watch live in the middle of the busy AGM season and still don't know what answers were provided because you don't see to have published a copy of the AGM webcast or a transcript. Why not and will a recording of today's full EGM be published via Investorhub for the benefit of the circa 4,300 shareholders who weren't able to tune in live?

Answer: Watch the chaotic way this Recce EGM wrapped up with belated proxy disclosure showing more big protest votes and executive chair John Prendergast brushing over written questions and then dismissing the request for shareholder meeting webcasts or transcripts to be published, declaring they don't do this at Recce. Well maybe investor relations service provider Investorhub needs to step up and start delivering AGM archive hosting as a standard part of their offer. Instead, the circa 4,300 Recce shareholders will only get a glimpse of what happened at this 32 minute EGM by coming here. Watch video of exchange via Twitter.

Q6. Why haven't you disclosed the proxies? Have there been any material protest votes on any resolutions?

Answer: The hard to read proxies were flashed up at the end of the meeting showing strong support for all resolutions. Watch video of chaotic end of the meeting via Twitter. Turns out, when the these poll results were released to the ASX, it showed all 6 resolutions were defeated so clearly a group of major shareholders decided to ambush the board on the virtual floor of the virtual meeting, rendering the EGM pointless as nothing was approved.

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