AGM Chairmans Address 29.05.20

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NZX Release 29 May 2020

CHAIRMAN’S ADDRESS - AGM
At the 2019 Annual Meeting the directors advised that the company
would continue to sell Arthrem in New Zealand but would withdraw from
Australian wholesale distribution arrangements. This withdrawal from
Australia was completed in early September.
No advertising or promotion of Arthrem was undertaken during the year
due to the risk that Medsafe would succeed in having Artemisia annua
declared a prescription medicine. Medsafe achieved that outcome and
on May 2020 products containing Artemisa annua extract became
unlicensed medicines. While unlicensed medicines can be sold legally
by pharmacies to fulfill a prescription issued by a doctor, the market is
effectively closed to Arthrem.
In the six month report issued on 29 August 2019 full provision for all
stock, packaging and related marketing material, including websites,
was included in the six month result. The company’s office in Wellington
was closed and the premises leased.
The financial result for the year reflects all closure costs and provisions.

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Medsafe Prosecution
The company has appeared at three hearing dates in the High Court
over the last 12 months but limited, if any, progress has been made to
secure a hearing date. This matter is ongoing.
Financial Support
On behalf of shareholders I wish to acknowledge and thank the Brankin
Trust for its continued financial support over the last few months.
Without this support the company would have folded many months ago.
Proposed Acquisition
The directors have been working on a revitalization of the company as
advised to shareholders and the market on 19 December 2019. The
proposed acquisition of three aged care facilities, and the assumption of
a lease on another non-operating facility in Christchurch, owned by
interests associated with the company’s majority shareholder has been
developed over the last 12 months.
Documents were sent to shareholders earlier this week for consideration
and voting on at a special meeting of shareholders to be held on 11
June 2020. The completion of these documents to the satisfaction of
three regulators (being NZX, The Financial Markets Authority and the

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Takeovers Panel) has been a very time consuming, arduous and
expensive exercise. It was not assisted by the Covid-19 situation.
I apologise if shareholders may have felt that they were left in the dark
in recent months but you can see from the extensive nature of the
compliance documentation sent to you this week, and the additional
information provided on the company’s website, that considerable
work has been underway to enable the commencement of a new
business for the company.
I wish to thank my co-directors for their considerable personal
contribution to the company during the year and to our management
team for their continued commitment.
The Annual Report including Chairman’s Report and Financial
Statements are now open for discussion.