5-7% of its GDP is directly or indirectly related to fossil fuel extraction and mostly exports. View source version on businesswire.Australian Net Zero Projected export primary energy (Exajoules / year)Īs I noted in my assessment of Australia’s 2023 Net Zero plan, which was heavy on hopium and light on reality, Australia currently exports four times as much primary energy as its entire economy consumes. I encourage all shareholders to communicate with members of the RBL Board and management and demand substantive accountability and change. The many operating and governance issues were known then and they have only gotten worse with the passage of time. Without significant near-term changes, such as those described above, I believe the Company should pursue all strategic alternatives, including a possible sale or merger of the Company, before shareholders see even further erosion of value.Īdditionally, here is a link containing my letters to this Board over the last 12 months: This group has failed to deliver for too long and it is not reasonable for them to request and expect continued patience and trust from long suffering holders. Such an opportunity will likely present itself at this year's annual general meeting given the first strike the Company received at the 2022 AGM. This Company needs no nonsense, experienced, non-executive directors chosen by the shareholders rather than an incumbent Board. Given their poor track records as non-executive directors at both the Company and Star Entertainment, Heap and Ward should resign. Without significant changes to the Board, I believe oversight, governance and strategy will remain weak, accountability low and operating performance underwhelming. On our call, Hosking indicated that he has such a dashboard with key metrics: sharing those data points and, importantly, operating trends, would give shareholders confidence management’s plan is driving operational improvements. RBL is a business rich in daily data a seasoned operating executive would simply share data and trends from their weekly operating dashboard. I urge shareholders to demand the following:ĭisclosure of sufficient operating detail around key metrics and trends that give confidence Hosking has his hand on the tiller of this ship and it’s headed in a value creating direction. I do not believe he is a strong operational leader, does not know how to choose growth operators and, accordingly, while the Company will likely get to cash flow break-even, investors are left with little confidence in a go forward value creating growth strategy. Instead, not unlike recent RBL CEOs, his seemingly reactive approach rests on trying a number of initiatives and hoping that one of them works. In our conversation, Hosking struggled to describe an operating methodology and leadership cadence that gave me confidence he is a proactive operator capable of driving operational trends through an intentional management approach. The key investor question then becomes, what has this CEO, and the Board, learned over the last five years of failed leadership and strategies that support the notion that today’s ideas will result in sustained value creation for the shareholders going forward. Yet, as investors well know, one does not shrink to prosperity. I believe it a relatively straightforward exercise in this situation to reduce costs to achieve cash flow break-even: simply reverse the misguided and ineffective allocation of circa $50mm of incremental capital over the last 18-24 months. The red flags are many and the case for substantive changes could not be more compelling.ĭuring my roughly 35-minute call with the CEO, Martin Hosking indicated that he was focused on driving profit and growth: thank you, a blinding glimpse of the obvious. I, and the investment community, have been underwhelmed by these Company communications and, not surprisingly, the share price has declined a further approximately 25% over the last 10 weeks to an all-time low. I participated in a video call with the CEO on May 17 th The Company issued a further market update on May 10 th The Company issued a market update on April 20 th What has happened since my letter in early April? I own 800,000 RBL shares acquired at an average cost significantly above the current price of approximately $0.34 per share. My name is Michael McConnell and I write to you again as a concerned RedBubble ("RBL" or the "Company") shareholder. LOS ANGELES, June 28, 2023-( BUSINESS WIRE)-Michael McConnell, a holder of 800,000 shares of RedBubble Limited ("RBL" or the "Company") (ASX: RBL, ADR: RDBBY) today issued the following open letter to RBL shareholders:
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