GTH
Gathid LTD
ASX
Annual General Meeting Results
Sentiment:
Annual General Meeting Results
20 November 2024 11:15 PM
Gathid Limited's Annual General Meeting saw shareholders reject key proposals including a remuneration report, omnibus incentive plan, and performance rights issuance, while approving a director's re-election and prior performance rights ratification.
Capital raise
The rejection of the 10% placement facility suggests that securing additional capital may be more challenging than anticipated.
Worse than expected
The rejection of several key resolutions, including the remuneration report, incentive plan, and placement facility, indicates worse-than-expected results from the AGM.
Summary
- Gathid Limited (ASX:GTH) held its Annual General Meeting (AGM) on November 21, 2024.
- Shareholders voted on six resolutions, with several failing to pass.
- Resolution 1 (Adoption of Remuneration Report): Not carried; 42.77% voted for, 57.23% against.
- Resolution 2 (Re-Election of Director Mr. Craig Davies): Carried; 69.03% voted for, 30.97% against.
- Resolution 3 (Approval of Omnibus Incentive Plan): Not carried; 42.86% voted for, 57.14% against.
- Resolution 4 (Issue of Performance Rights to Executive Director): Not carried; 43.27% voted for, 56.73% against.
- Resolution 5 (Ratification of Prior Grant of Performance Rights): Carried; 69.66% voted for, 30.24% against.
- Resolution 6 (Approval of 10% Placement Facility): Not carried; 69.89% voted for, 30.11% against.
- Total votes cast varied across resolutions, ranging from approximately 60 million to 80 million votes.
Sentiment
Score: 4
Explanation: The overall sentiment is negative due to the failure of several crucial resolutions. While some resolutions passed, the rejection of key proposals related to compensation, incentives, and capital raising casts a shadow on the company's near-term prospects.
Positives
- Re-election of Director Mr. Craig Davies was successfully carried.
- Ratification of prior grant of performance rights was approved by shareholders.
Negatives
- Shareholders rejected the adoption of the remuneration report.
- The proposed omnibus incentive plan was not approved.
- The issuance of performance rights to the executive director was rejected.
- The approval of a 10% placement facility was not carried.
Risks
- Potential negative impact on employee morale due to the rejection of the remuneration report and incentive plan.
- Difficulty in attracting and retaining talent without an approved incentive plan.
- Limited access to capital due to the rejection of the placement facility.
- Potential for shareholder dissatisfaction due to the failure of several key resolutions.
Future Outlook
The company's future outlook is uncertain given the rejection of several key resolutions, particularly the placement facility, which could limit access to capital.
Industry Context
The results of the AGM may reflect broader concerns within the Australian market regarding executive compensation and corporate governance. The rejection of the placement facility could indicate investor hesitancy towards further capital raising in the current economic climate.
Next Steps
- The company may need to reconsider its approach to executive compensation and incentive plans.
- Exploring alternative methods of securing capital may be necessary.
Key Dates
- 21 November 2024: Date of the Annual General Meeting
Keywords
Gathid Limited, AGM, Annual General Meeting, Shareholder Vote, Resolutions, Remuneration Report, Incentive Plan, Performance Rights, Placement Facility, ASX:GTH
GTH
Gathid LTD
ASX
Sector: Software & Services
Filings with Classifications
Better than expected
16 April 2025 7:19 PM
Quarterly Activity Statement & Business Update
- The company's ARR growth of 142% indicates better than expected performance compared to the end of FY24.
Delay expected
23 January 2025 10:41 PM
Quarterly Report
- The company is waiting for the resolution of a dispute over the sale of its physical security business before relisting on the ASX.
- The audit opinion in respect of the FY24 Financial Statements may require further actions by the ASX before any relisting takes place.
Better than expected
23 January 2025 10:41 PM
Quarterly Report
- The company's ARR growth of 12% in the quarter and 92% since the end of FY24 is better than expected.
- The company secured two new customer contracts and maintained a high renewal rate, which is better than expected.
- Sales revenue increased from $272k to $390k, which is better than expected.
Worse than expected
21 November 2024 5:50 PM
AGM Results
- The 'first strike' against the remuneration report indicates that the company's compensation practices did not meet the approval of a sufficient number of shareholders.
Worse than expected
20 November 2024 11:15 PM
Annual General Meeting Results
- The rejection of several key resolutions, including the remuneration report, incentive plan, and placement facility, indicates worse-than-expected results from the AGM.
Capital raise
20 November 2024 11:15 PM
Annual General Meeting Results
- The rejection of the 10% placement facility suggests that securing additional capital may be more challenging than anticipated.
Delay expected
20 November 2024 8:05 PM
Annual Report Presentation
- The finalization of the sale of the RightCrowd businesses has been delayed due to an ongoing dispute with the buyer, Bloom.
- The audit of Gathid's FY24 financial accounts has been delayed due to Bloom's failure to provide necessary documents to the auditors.
Worse than expected
20 November 2024 8:05 PM
Annual Report Presentation
- The company's overall profit was driven by the sale of its RightCrowd business, masking a significant loss from its core Gathid business.
- The ongoing dispute with Bloom regarding the sale of RightCrowd and potential further claims creates significant uncertainty and financial risk.
- The auditors' inability to provide an unqualified opinion on the financial statements due to lack of access to information from Bloom indicates a significant shortcoming in the financial reporting process.
Delay expected
4 November 2024 8:00 PM
Quarterly Report
- The finalization of the sale of the physical security business has been delayed due to a dispute over the final payment calculation, impacting the company's ability to provide the ASX with the required information for relisting.
Worse than expected
4 November 2024 8:00 PM
Quarterly Report
- The unresolved dispute regarding the final payment from the sale of the physical security business represents a significant negative deviation from expectations, creating uncertainty and delaying the company's ASX relisting.
Worse than expected
18 October 2024 1:15 AM
Suspension Notice
- The announcement details numerous companies failing to meet reporting deadlines, resulting in potential delisting, which is significantly worse than expected performance.
Capital raise
16 October 2024 6:58 PM
Notice of Annual General Meeting
- The company is seeking shareholder approval for a 10% placement facility, allowing it to issue equity securities up to 10% of its issued share capital over a 12-month period.
Delay expected
30 July 2024 12:04 AM
Quarterly Activity Statement
- The resolution of the dispute over the consideration due for the sale of the physical security businesses is delayed.
Worse than expected
10 July 2024 2:15 AM
Market Announcement Long Term Suspended Entities
- The document indicates that numerous companies have failed to meet their reporting obligations, which is worse than expected for market compliance.
Delay expected
10 July 2024 2:15 AM
Market Announcement Long Term Suspended Entities
- The document lists numerous companies that have delayed lodging required periodic reports.
Worse than expected
20 June 2024 7:12 PM
Release to ASX
- The expected cash balance is lower than the previously announced target.
Delay expected
20 June 2024 7:12 PM
Release to ASX
- The FY23 R&D Tax Incentive claim will be received after 30 June 2024.
- The FY23 income tax return submission is delayed due to the expert determination process.
Delay expected
19 April 2024 3:11 AM
Business Update
- The expert determination process regarding the dispute with Bloom is ongoing.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.