Promisia Integrative Limited (PIL)

**Lola** · 24-05-2017, 08:49 PM

Originally Posted by bulyak

Just received my proxy forms in the mail for the AGM next Tuesday. Great to see a few nominations in there. With only 3 board members and no CEO it will be interesting to see if any of the nominations are passed. My guess is that the current board might approve one so that they do not give up control but approving 2 would be a reach. 2 of them have extensive marketing experience, which is what this company needs. It is all about creating demand, which they appear to be demonstrating well here in NZ. Great product...

I got my papers too and see there are three ladies nominated for the Board. Wonder what's in that Arthrem juice that turns them on so strongly , in a Governence sense of course.

**Leftfield** · 30-05-2017, 11:51 AM

Originally Posted by Lola

I got my papers too and see there are three ladies nominated for the Board. Wonder what's in that Arthrem juice that turns them on so strongly , in a Governence sense of course.

Two of the ladies have now withdrawn...... pretty mickey mouse IMHO. what's in the Anthrem Juice that turns them off!!??

Director Nominations

9:19am, 30 May 2017 | ADMIN

30 MAY 2017
PROMISIA INTEGRATIVE LIMITED – DIRECTOR NOMINATIONS
The Directors of Promisia Integrative Limited (NZX: PIL) advise that Ms Barbara Donaldson, nominated by shareholders for election to the board of directors, has withdrawn her nomination and, accordingly, Resolution 5 in the Notice of Meeting will be withdrawn.

**Leftfield** · 30-05-2017, 06:40 PM

After my grumpy words re the withdrawal of 2 female director nominations I thought I had better go along to the PIL AGM today.

Positives
- CEO role currently being filled on an interim basis by Director Thomas Brankin on a voluntary/unpaid basis
- New pet product ready to be launched
- Hopeful of profit in FY18
- PIL v involved with the supplier of their raw material and monitors quality from seeds to harvest
- 1 x new female director seems to have good skills in marketing and internet.
- Well researched product with genuine benefits
- TGA certification in Aust is a major plus and allows for much stronger advertising claims in Australia than in NZ

Negatives
- New CEO not likely until end 2017
- New competitors trying to muscle in on Arthrem’s success in NZ
- Launch into Aus market not likely until late 2017 and then only 1 state initially
- No moat of IP protection for their key product
- Overly reliant on one product and one raw material supplier
- Clunky web site but due for improvement

Overall

Speculative and not for the faint hearted, but well worth watching.

**Lola** · 31-05-2017, 08:23 PM

Originally Posted by Left field

After my grumpy words re the withdrawal of 2 female director nominations I thought I had better go along to the PIL AGM today.

Positives
- CEO role currently being filled on an interim basis by Director Thomas Brankin on a voluntary/unpaid basis
- New pet product ready to be launched
- Hopeful of profit in FY18
- PIL v involved with the supplier of their raw material and monitors quality from seeds to harvest
- 1 x new female director seems to have good skills in marketing and internet.
- Well researched product with genuine benefits
- TGA certification in Aust is a major plus and allows for much stronger advertising claims in Australia than in NZ

Negatives
- New CEO not likely until end 2017
- New competitors trying to muscle in on Arthrem’s success in NZ
- Launch into Aus market not likely until late 2017 and then only 1 state initially
- No moat of IP protection for their key product
- Overly reliant on one product and one raw material supplier
- Clunky web site but due for improvement

Overall

Speculative and not for the faint hearted, but well worth watching.

Thanks for all this L Field
Glad to here the acting CEO not a cost

By the way how many at the AGM?
Market cap only 20 mill so I guess only half a dozen or so?

**Leftfield** · 01-06-2017, 08:22 AM

Originally Posted by Lola

Thanks for all this L Field
Glad to here the acting CEO not a cost

By the way how many at the AGM?
Market cap only 20 mill so I guess only half a dozen or so?

The meeting was held in a telephone box (well.... a tab bigger) so it didn't take many to fill it up. My guess 30 to 40 attendees. Healthy, tasty nibbles and not a sausage roll in sight.

**artemis** · 01-06-2017, 10:05 AM

Some additional notes from the PIL ASM.

Profit expected this FY.

The number of shareholders is increasing - now 20% more than last year

#1 risk is a break in the supply chain of artemisia annua. However PIL controls the chain and is working with the Tanzania growers to increase production, including by improving the growing environment, eg optimal fertiliser. 2016 production up 60% and same increase expected 2017. Drying sheds have been set up to guard against weather, and they will add sheds as needed. From the photos they look like big tents. The company has stock on hand.

The Chair would make no comment on the departure of the previous CEO.

The issue of board nominations being withdrawn was raised. Three nominations were received right before nominations closed. There was one board vacancy. The board talked to all three and decided on one nominee who has expertise in marketing including social media.

Arthrem

A few doctors are now prescribing Arthrem. One shareholder said from the floor that his doctor said he had prescribed it for 20 patients.

Australia launch of Arthrem in Victoria before the end of this year. PIL is allowed to make claims there about reducing pain and other medical efficacy. These claims are not permitted in NZ by MedSafe rules for natural products, even if there is scientific evidence. PIL are v careful to stay within the rules, as to break the rules could mean MedSafe requiring product to be withdrawn from sale.

There are now 3 competitors to Arthrem, compared to none last year. One is established brand GoHealthy. So far PIL is the only one with science backing it.

New TV ad for Arthrem from today.

One reason PIL is focussing on sales through pharmacies is that there are a few contraindications for those on other medications. Arthrem is one of the top sellers in dollar terms. Some anecdotal evidence that some customers are moving to other brands, then moving back to Arthrem.

Due Diligence has begun in the South Korea market.

Artevite

Canine product is called Artevite and will be sold via pet shops and vets. Maybe only initially, not sure. Launch is to be August and will include a TV ad.

Artemisia annua is very bitter, which is not so much an issue for humans because of gel caps. These are no good for dogs though as they chew and bite. PIL has gone to a lot of effort to make it palatable, some big scientific words used which I didn’t understand but they sounded good! They also talked about how they went about determining if Artevite was working to eg reduce pain. Can’t ask the dogs, but once the product is out there I’m guessing owners will know.