Sareum Holdings (LSE:SAR) — AGM Proceedings 2023

0:02 Good morning, ladies and gentlemen, and welcome to the SAREUM HOLDINGS PLC Annual General Meeting twenty twenty three. Throughout this recorded meeting, attendees online will be in listen only mode. Questions are encouraged and can be submitted at any time using the Q and A tab situated on the right hand corner of your screen. Just simply type in your question at any time and press the pound. The floor is yours. You. Good morning, ladies and gentlemen, and welcome to the Annual General Meeting of SAREUM HOLDINGS PLC. I'm Stephen Parker, Chairman of the Board. A quorum being two members is present, and therefore, we may proceed with the business of the meeting. In common with recent Annual General meetings, we've also opened a link through the Investor Me company site in addition to the conventional meeting.

0:49 I'm particularly grateful to those of you who have chosen to attend in person. We will deal with the formal business of the meeting first and then take questions from the floor in the usual manner of our Annual General Meeting. Following these questions, we will try to cover some or all of the questions posed via the IMC site in the time remaining for the meeting. As is our usual custom, answers to these questions posted on the IMC site will be published on the website in the days following the meeting. We have a lot to get through today, and I'd be grateful if you would follow this procedure and keep questions until the formal stages. I would now like to introduce the board. Starting on my left, Doctor. John Reeder, Chief Scientific Officer and Co Founder of the company. On my right, Doctor. Tim Mitchell, CEO and Co Founder Mr. Clive Birch, Senior Independent Director and Chair of the Audit and Risk Committee and Doctor. Michael Owen, who is Chair of the Remuneration Committee.

1:46 I would now like to start the formal proceedings of this Annual General Meeting. The notice of the AGM was posted to shareholders on the 11/21/2023. Accordingly, the requisite notice of the Annual General Meeting has been given. I propose, therefore, with your consent, the notice of the AGM should be taken as read. Before proceeding with the formal business of this meeting, I will now read a statement, which was issued to the market this morning. The company made good progress in 2023 with its lead program SDC1801 with a Phase I clinical trial underway in Australia. SDC1801, SAREUM's TYK2 JAK1 inhibitor continues to demonstrate promise as a potential new treatment for autoimmune diseases with initial focus on psoriasis, an autoimmune condition affecting the skin.

2:36 Phase 1a clinical trial affecting evaluating STC-eighteen oh one in healthy subjects commenced in May 2023 at a specialist clinical unit in Melbourne, Australia. Following approval by the safety review committee based on preliminary data from the initial cohorts in a single ascending dose parts of the study, Dosing began in the multiple ascending dose escalation phase of the study in September 2023. The company has also recently started a food effect study for the compound. This part of the study will inform whether the drug should be taken with food or on an empty stomach, optimizing its potential benefits while potentially minimizing any possible side effects. Full safety data from the Phase 1a clinical trial are expected to be available during the first half of twenty twenty four and provided satisfactory results were obtained and subject to financing and regulatory and recruitment preparations, the company plans to initiate the Phase 1b clinical study aiming to recruit up to 24 psoriasis patients.

3:35 This study is expected to be completed before the end of twenty twenty four. Also in 2023, the first patent for SDC1801 was granted by the China National Intellectual Property Administration. This patent safeguards the use of SDC1801 for medical applications in treating inflammatory or immune disorders. Additionally, after receiving a notice of allowance from the Japan Patent Office in November, the patent for SDC1801 has now been formally granted in Japan. SAREUM continues to work on the translational study of SER-eighteen and SDC1802 as a candidate for cancer immunotherapy. These studies are aimed at identifying the most appropriate cancer application for SDC1802, an important step before proceeding toxicology and manufacturing studies.

4:23 In June 2023, the United States Patent and Trademark Office granted a new patent that encompasses the treatment of autoimmune diseases with SDC1802 and several of its analogs. This expansion effectively broadens the compound's protective reach beyond its primary focus in immuno oncology. Sierra Oncology, a subsidiary of GSK PLC, has completed the return of the clinical study reports and other associated documents and data related to SRA-seven thirty seven, the SAREUM's co development partner, the CRT Pioneer Fund CPF. CPF is actively engaged in evaluating potential further development opportunities for SRA737.

5:08 Further updates will be provided as soon as possible. As announced on the 08/03/2023, SAREUM agreed terms on an equity prepayment facility of up to £5,000,000 with Riverford Global Opportunities PCC Limited. The company received initial deposit of £2,000,000 prior to associated costs on the 08/04/2023. SAREUM drew down an additional GBP 300,000 as the second deposit under this facility on the 11/23/2023. If fully drawn down the facility together with anticipated tax incentives of GBP 1,600,000, of which GBP 400,000 has already been received should enable the completion of the Phase 1a and 1b clinical development of SDC1801 expected to be a catalyst for driving shareholder value and for general working capital to quarter four twenty twenty four.

6:02 In conclusion, the Board remains optimistic about SAREUM's pipeline of kinase inhibitors. The focus remains on advancing SDC1801 into further clinical development, supported by a strong intellectual property foundation and a prudent approach to financial planning. CPF is taking the lead in evaluating potential further development opportunities for SRA-seven thirty seven and further updates will be provided as soon as possible. We would like to thank our shareholders and other stakeholders for their continued support and look forward to providing further updates on progress in due course. Now before we turn to the resolutions, would like to say a few words about procedure and remind you that only physical attendees are able to vote today. I will propose each resolution in turn having briefly summarized its content.

6:52 I will then read the results of the votes received. The directors will not answer questions relating to the individual rights of shareholders. Any shareholder who wishes to raise such a question to communicate with me or Doctor. Mitchell by e mail following the meeting. I shall move on to the formal business of the meeting. We'll now recite the resolutions. The full text of each of the resolutions is set out in the notice of Annual General Meeting, a copy of which was posted to shareholders or NLU holders and is on the company's website. Resolutions one to seven were proposed as ordinary resolutions, each requiring a simple majority of the votes cast to be in favor in order to be passed. Resolution eight was proposed as a and nine were proposed as a special resolution requiring a majority of 75% of the votes cast to be in favor billed to be passed.

7:39 Each resolution received a total of 4,992,202 votes, which represents 7.11% of the total shares outstanding. Resolution one, I propose Resolution one as a notice of Annual General Meeting as an ordinary resolution to receive and adopt the reports of the directors and financial statements for the financial year ended 06/30/2023. Proxy votes have been received as follows. In favor, 955,805 against 33,480 withheld 2,917. I will now put the resolution to the meeting on a show of hands. Will all those in favor please raise their hands?

8:31 Thank you. Those against, please raise their hands. Thank you. Does anybody wish to indicate an abstention? No. Thank you. In that case, I declare that the resolution is passed by the necessary majority. Resolution two. I proposed resolution two in the notice of annual general meeting as an ordinary resolution to receive and adopt the remuneration committee report for the year ended 06/30/2023. Proxy vote has been received as follows. In favor, 4,791,240 Against, 187,995. Withheld, 6,967.

9:17 I will now put the resolution to the meeting on a show of hands. All those in favor, please raise their hands. Thank you. Any against, please raise their hands. Thank you. And, does anyone wish to indicate an abstention? No. Thank you. I declare the resolution carried by the necessary majority. Resolution three in the notice of annual general meeting is for the reelection of doctor Tim Mitchell, who retires by rotation of the nine section 93 of the articles of association and who being eligible offers himself for reelection as a director. Proxy votes have been received as follows. In favor, 4,723,539.

10:03 Against, 256,139. Withheld 12,524. I will now put the resolution to the meeting on a show of hands. For all those in favor, please raise their hands. Thank you. Those against, please raise their hands. Thank you. I declare the resolution carried by the necessary majority. I now pass the chair to Mr. Clive Birch as the senior independent director for the next resolution. Morning, ladies and gentlemen. Resolution four in the notice of the annual general meeting is for the reelection of doctor Steve Parker, who retires by rotation under section 93 of the articles of association, and who, being eligible, offers himself a reelection as a director.

10:56 Proxy votes received in favor, 4,569,986 986. Sorry. Against 399,292. Withheld 22,924 of the total votes cast, 4,992,000. I'll now put a resolution to meet you by a show of hands. All those in favor? All those against? Thank you. And I think that resolution is carried. I will hand back to chairman.

11:42 Thank you, Clive. Resolution five on the legislative general meeting is to reappoint Shipley's LLP as auditor of the company to hold office at the conclusion of this annual general meeting until the conclusion of the next general meeting at which the financial statements are laid before the company. Pro proxy votes have been received as follows. In favor, 4,000,800 and 55,004 against 92,757 withheld four 44,441. I will now put the resolution to the meeting on a show of hands. Will all those in favor, please raise their hands. Thank you. Those against, please raise your hands.

12:27 Thank you. I declare the resolution carried by the necessary majority. Resolution six of the order of the notice of annual general meeting is to authorize the audit committee to determine the remuneration of the auditors of the company for the ensuing year. Proxy votes have been received as follows, in favor, 867,151 against 86,553 withheld 38,498. I will now put the resolution to the meeting on a show of hands. Will all those in favor please raise their hands? Thank you.

13:12 All those against, please raise their hands. Thank you. I declare the resolution carried by the necessary majority. Opposed Resolution seven in the notice of Annual General Meeting as an ordinary resolution for generally and unconditionally authorized directors pursuant to and in accordance with Section five fifty one of the Companies Act 2006 to exercise all the powers of the company to lock shares or grant rights to subscribe for or to convert any security into shares in the company. A, up to an aggregate nominal amount of £878,273 and b, comprising equity securities as defined in Section five sixty(one) of the 2006 Act up to a further aggregate nominal amount of £878,273 in connection with or by by way of a rights issue.

14:11 Sorry. With an offer by way of a rights issue, such authorities to apply substitution for all previous authority pursuant to Section five fifty one of the 2006 Act and to expire at the end of the next Annual General Meeting or if earlier at the close of business fifteen months after the passing of this resolution. But in each case, so that the company may make offers or and enter into agreements during the relevant period, which would or might require shares to be allotted or rights to subscribe for or to convert any security into shares to be granted after the authority ends. For the purposes of this resolution, rights issue means an offer to ordinary shareholders in proportion as nearly as may be practicable to their existing holdings and holders of other equity if this is required by the rights of those securities or if the directors consider it necessary as permitted by the rights of those securities.

15:07 We will subscribe for further securities by means of a renounceable letter or other negotiable documents, which may be traded for a period before payments for the securities due. But subject in both cases to such exclusions or other arrangements as the directors may deem necessary or expedient in relation to the treasury shares, fractional entitlements, record dates, or legal, regulatory, or practical problems in or under the laws of any territory. Proxy votes have been received as follows. In favor, 4,567,800 eight against 373,843 withheld 50,551. I will now put the resolution to the meeting on a show of hands.

15:55 Will those in favor, raise their hands. Thank you. Will those against, please raise their hands. Thank you. I declare the resolution carried by the necessary majority. Resolution eight. Given the passing of Resolution seven, I propose Resolution eight in the notice of Annual General Meeting as a special resolution that in substitution for any existing authority, but without prejudice to the exercise of any such authority prior to the date of passing this resolution, the Board of Directors be and that they are generally empowered pursuant to Sections five seventy and five seventy three of the 2006 Act to allot equity securities within the meanings of Section five sixty of the Act, including the grant of rights as described before or to convert any securities into ordinary shares of £0.0125 each in the capital of the company or for cash either pursuant to the authority conferred on it by Resolution seven or by way of a sale of treasury shares within the meaning of Section five sixty three of the act as if Section five sixty one of the Act did not apply to any such allotment or sale, provided that this power shall be limited to: a, the allotment

17:17 of equity securities or sale of treasury shares for cash in connection with the rights issue, open offer or other preemptive offer in favor of the holders of ordinary shares on the register of members on a date fixed by the board, where the equity securities respectively attributable to the interest of all such holders of ordinary shares are proportionate as nearly as may be practical to the respective numbers of ordinary shares held by them on that date. Subject to such exclusions or other arrangements in connection with the rights issue, open offer or other preemptive offer as the Board deems necessary or expedient to deal with the shares held in treasury, fractional entitlements to equity securities and to deal with any legal or practical problems or issues arising in any overseas territory or under any requirements of any regulatory body or stock exchange or to deal with any matter whatsoever.

18:08 And b, the allotment of equity securities or sale of treasury shares other otherwise and pursuant to sub paragraph a of this resolution up to an aggregate nominal amount of £878,000 273 sorry, £878,273 and provided that this power should expire at the conclusion of the Annual General Meeting of the company to be held on or before the 03/13/2025, say that the company may before such expiry make an offer to enter into an agreement which would or might require equity securities to be allotted or treasury shares to be sold. Such expiry and the board may allot equity securities and sell treasury shares in pursuant to such an offer or agreement as if the authority conferred hereby had not expired.

18:57 Proxy votes have been received as follows. In favor, four million five hundred and seventy three thousand and ninety seven against three hundred and sixty eight thousand five hundred and fifty four withheld 50,551. I will now put the resolution to the meeting on a show of hands. Will all those in favor please raise their hands? Thank you. Those gates, please raise their hands. Thank you. I declare the resolution carried by the necessary majority. Resolution nine. I propose Resolution nine in the notice of Annual General Meeting as a special resolution that a general meeting other than an Annual General Meeting may be called on not less than fourteen clear days notice.

19:47 Proxy votes have been received as follows: In favor, 4,926,142 against 49,243 withheld 16,817. I will now put the resolution to the meeting on a show of hands. Will all those in favor please raise their hands? Thank you. Will all those against please raise their hands? Thank you. I declare the resolution carried by the necessary majority. Ladies and gentlemen, that concludes all of today's formal business. On behalf of the board, I would like to thank you all for your attendance and declare the full business of the annual meeting closed. In closing, may I thank you all for your ongoing support during this year, which has continued to present challenges to the sector generally despite your company's significant achievement in entering the clinic for the first time with a wholly owned compound.

20:43 The Board will now be happy to try and answer questions from attendees and if time permits, from the INC platform. Before we go to general questions, I've had a request from Mr. Smith, who would like to make a statement. So if you'd like to do that, sir. Sorry, sir. Are you do you wish to do so? I do. Yeah. Sure. I myself have chosen to in order to be here today.

21:40 I'd like to commence by both thanking and complementing the sterling efforts, special dedication, laser like focus, detail of SAREUM's chief scientific doctor, doctor John Reeder, about whom we would not now find our best up EGC inflection point, SAREUM development. I. E. With what is cutting edge, pipeline, several potentially world class disease curing, life prolonging, quality of life compound, HOLDINGS about two and forty years, being found significantly wanting.

22:48 And how do they doubt plus the ordinary shareholders and the legal and rightfulness of this company being utterly financially devastating? But you yourself, SAREUM SAREUM HOLDINGS PLC, our management team, you'll acknowledge. My opinion is a direct result. Your extremely questionable choices, financial management, and poor stewardship, SAREUM, has now exist a cabinet disconnect between scientific developments and tribulations to doctor Frieda and the company's quarterly official share price corresponding market capitalization. In truth, it is a dumbing indictment of the aforementioned we are today even required to approach a pony subject to funding.

23:39 A truly eye watering figure of 290,000,000 capitalization or 88% of its share price value has over the course of two and a half years in white Start developing pipeline. In the amount of words of Max Klein, science develops funeral by funeral. Let's face it. In all problems, far too many people already died resulting from the shameful stalled development of SRA seven three seven along with the glacier like advances STC's one eight zero two translational studies.

24:28 Not to mention the fact that one of our former jewel in the crown assets, namely Aurora plus FLT three, is now currently languishing on a shelf somewhat. All of which rather can mean he brings me around the current role of ours as CEO. His scientific pedigree, professional expertise would, I feel, be far better suited, serving the company and its shareholders' needs by relinquishing the role as CEO, and in so doing, being afforded the opportunity to return full time laboratory. Conclusion. Turn to business strategy. So based upon the past evidence, the SARE management team's track record in conducting licensing deals.

25:15 I certainly am. As such, I would like to respect alternative business strategy. To condescending divide opinion, please. And it is this, namely, SAREUM PLC in respect to all SAREUM HOLDINGS PLC's various assets, I e vote, which I previously mentioned, and in addition, skill development platform over offers in excess of £3.50 share.

26:05 We currently value SAREUM HOLDINGS PLC £200. This is my assertion in so doing any genuinely interested pharmaceutical company private equity investment will then be required to reveal their answer. And in price mix underneath itself, the expectation would be if SARE's assets are indeed highly priced and valued as some would play, then a form of competitive tendering would ensue with the result of that being that ordinary shareholders would then be afforded the opportunity to vote in order to either accept or reject any offers. With the potential net outcome resulting in a timid and clinical conclusion disposal of SAREUM HOLDINGS PLC, to a company who has all the depth and breadth of scientific expertise along with the necessary financial resources required to in order to fully develop pipeline Thank you.

27:21 Mr. Clerk, we'll take that as we go forward. Obviously, we need to see some data first. Right. With that, we just move to or throw the room open to any questions you may have generally, please. Mr. Chairman, if I could just ask you to repeat the questions to paraphrase the questions for those online because we can't hear the attendees in the room. Thank you, sir. I will indeed. Yes, sir.

27:54 Off. Two questions I've got. First one is 737 time. We haven't actually had an update on what we do. What we told Yeah. So is there anything that you can answer? The second question. Specifically believe it's the best option.

28:47 Sure. So shall I just quickly summarize for people online? The first part of the question is looking for an update on 737, which, of course, is being handled by CPF. And the second was a question regarding the Riverford facility that was entered into in the late summer as to why we feel or felt that was the best option going forward for the company. So I'll ask Tim to pick up the 737 slide. Thanks, Stephen. Yes. So we as you say, we had access to the data room early this year. We've reviewed the data. We haven't found anything particularly unexpected, suppose, that we didn't see any big gaps in the data. We didn't particularly see any opportunities that we thought we could seize on or or take a different approach to. So we've we've been happy for CPF to take the lead in looking for future development opportunities.

29:44 So we we don't really have any concrete updates to give. No. I have been following up to publications. Negotiating actively to build that we we constantly come to the AGM. Criticism. So I've got so that your point's taken.

30:30 Yeah. I I I think that we perhaps action. Course. Yeah. I mean, I suppose, you know, it we didn't feel it was noteworthy because they've been know, there was really nothing to to report from the data. So didn't make any particular statement about it. And I think as as we've said, it it's it's really in the hands of CPF who are leading the charge on future development opportunities. Chairman, if I could just ask that all the comments from the investors in the room where appropriate can be broadcast because we cannot pick attendee comments up from the online platform at this point. So if you could repeat, that'd be most grateful. Thank you once again.

31:21 Okay. The point that the shareholder made was that he felt there should have been a more active reporting to shareholders through the year of our conclusions from looking in the data room of SRA-seven thirty seven. And we accepted that point. And hopefully, of course, there will be something to report in the near future regarding that drug. And we will certainly do so at that point. So on to the River Falls facility. Broadly speaking, we were in a position where we needed to balance several different factors at that point. One of which, of course, is the hope that we all have that the 1801 clinical study will come out positive and leads to hopefully a rebasing of the share price on the back of that.

32:18 The other was the state of market through this year. And and I'm sure many of you are invested in more than just the one company. And you will probably all have had the experience that, life on AIM has not been the the most fun for most companies through the year. So it it broadly speaking, it came down to the the the the best the best outcome by by what the the route that we could take, and that was why we chose Riverford. We actually looked at three different offers of similar products from different firms, and the the Riverford package was the was was clearly the best, which is why we chose that one.

33:05 Yes, sir? Take you just a look at the straightforward placing. We looked at the we were advised by our brokers that the market was not gonna withstand that that route or not on terms which could possibly be acceptable to come and sit down with with our shareholders. Yes, sir. The the one point that I really want to highlight is communication. Over the past thirty years, I've I've worked with hundreds of both privately held and public companies. And the one huge difference between the two is communication. Uh-huh. Even as a company becomes public, has an obligation towards the shareholders to communicate to them certain things that is not required when it's a public cleanup. Absolutely. So it becomes 50% of the job of management to communicate.

34:04 Now the communication over the past few years that I've been just following the company is that there there has been a complete lack of communication. First front is the investor relations part, which is communication to the market, communication to shareholders, relationships with brokers, analysts, and so And this, with all due respect to the board, it cannot be initiated from the board. It has to be the role of investor relations person to take the lead on that. And whether this is a regulatory issue or not has to be decided by the investor relations person, not the board of directors. And they have to have the background and the knowledge to do that.

34:52 You have spoken about the pipeline of compounds that you don't really know anything about. If the pipeline is meant by eighteen zero one, eighteen zero two, and seven three seven, that's not really a pipeline. These are already compounds that everybody knows about, and there isn't really anything new there. If there is a pipeline, you need to know about it as shareholders, advisers, as The other thing is the communication of what is being done in the company. No one in this room, probably 99% of us, don't know what the management or the board are doing day to day. So one of the things that we need to understand as well is the communication to the market cannot just be when an event happens, but also updates regular updates to the shareholders who are, like, mister Smith said, the rightful owners of.

35:50 So this is really key as a starting point. The communication to the market and shareholders has to improve drastically because at the moment, simply coming out with a piece of news that says something that that really is like a this is our results. These are the resolutions that have been passed is not good enough. Second thing is the communication is the PR part of things. Now all the advancements of that you're having with the clinical trials with whatever you're working on, this cannot be done in a dark room somewhere and no one hears about. This has to be in the news. It has to be in newspapers.

36:35 It has to be in in the public eye, not to the shareholders, not to the market, but in everywhere. We want to see doctor Mitchell, doctor Reither in their white lab coats in the news on the 10:00 news, talking about a cancer drug that we're working on. It doesn't have to be really, it it has to be driven by a proper proper PR initiative that is being driven by a commercial sense rather than just the scientific part as missus Smith was saying earlier. So these these two parts of the communication, they have to be very clearly driven and not driven by the board, but driven by professionals in their fields within these two distinct parts of the communication.

37:25 Otherwise, it's like giving a Rolls Royce to a 15 year old who can't drive, and they will crash it in a way. It is really you have an amazing product with amazing potential that is currently being mismanaged, and it is not communicated properly to anyone outside of this room. So this is really please, I beg you, to really consider the communication part as a priority in everything from now on. Because otherwise, it is very theoretical, and and, really, it is pointless to keep talking about shareholder value and all of these things because if you have a great product that you're not selling, it doesn't really matter what you have.

38:10 And one last point with the market conditions. I work in the market, and and this is something that that's my job. And and to be saying that the market conditions are not suitable for raising funding and so on, that's not true. The only thing that is different is the communication to the market. Because if you're not communicating properly to the market, the market is seeing you as a dead horse. If you're communicating properly and the perception of the public towards the company is positive, you have a market that is unlimited. So this is again, it goes back to the communication part. That's it. That's all. Thank you. Forgive me.

38:56 I I will need to summarize. I'm gonna summarize very briefly, from what you said, but it's not not to reflect that we're not paying attention to it. Broadly speaking, the shareholder, made points about both the IR and PR approach that the company has taken, and that is something which we will certainly continue to pay attention to. And we are actually sitting in the offices of our PR firm, and we have a relatively newly appointed Head of IR at the table here. So we are taking steps in the right direction. The nature of the company in this sector, of course, is that we live or die by the data. And everybody knows because of the nature of a public company that we are in a trial that is coming towards its conclusion.

39:48 And therefore, it is very hard to have somebody entering a conversation prior to those data being released because obviously, it's sort of to pick up your analogy with the Rolls Royce. You might know that the next model is coming and therefore, you're not going to have a conversation about the current one. But I take the point, we will do our best, resources permitting, to raise our game in that regard. I should also say, of course, that as an AIM company, we are, we have very strict guidelines to what we can and cannot say in the way of factual material to the market. And we have a nomad, we have brokers who know the rules backwards, so to make sure that, we're not transgressing those rules. So as much as as it will be lovely to to to have a occasional fanfare and and such like, we also have to stay within within the rules that are that are set by the markets.

40:51 But, yes, I'd I'd I'd take that point. Is there another question, please? Sorry. Roger. Mister chairman, I noticed last year your salary went up 50%. Now this is I don't want to have a wink about that, and I have absolute confidence in the remuneration committee. But, I mean, it does suggest a kind of a a shifting of or more active involvement by you and a shifting of the role that members of the senior leadership team, including yourself, play. So perhaps can you expand a bit on how you've been more active, over the last couple of years than perhaps was originally anticipated? I would say that, what's been referred to as the man the management team, which I guess essentially is the three of us on the side the the left side of the table as I'm looking at you, are working very closely together on a pretty much day to day basis.

41:51 As a non exec, of course, my role is is of its nature and as needed, but the but the, you know, the perception has been that the the need has grown over over that period. Last year, I attended the the JPMorgan conference on behalf of the company, and I should be doing so again in 2024. So so I do take an active role as as as being something of a I'm I'm I would say I'm I'm a visible part of the team. And, mister Chen, could I you feel it's appropriate to make any comments on the introductory statement to the shareholder if you don't think it's appropriate? That's, well understood. I as I acknowledged, mister Smith's right to to to speak, we will absolutely take it under advise, and he was kind enough to share a copy with us so we can see what the words are that he's and the points that he's making.

42:50 So, we will certainly pay pay close attention. Speak I think, sir, you answered the question. Yes? Yes. Just just on the subject of funding. I I I find it somewhat bizarre that we're in a position we're now in. I wrote to the board when our share price and old money was over 8.5¢, and I beseech you not to respond to the opportunity of raising funds at time. We didn't do anything. We didn't do it. But then should we be surprised when our CEO is on record, conclusion of an investor made company when a shareholder asked about share profit, rather admittedly, he told the SAREUM HOLDINGS PLC price.

43:39 That goes some way in my mind to explain the situation that we're now in. I find ourselves with funding which was more akin to that which we were exposed to ten, twelve years. We have the high networks built on that, but it on the subjective remuneration, if I may just take you back through the midst of time to r and s number zero four four r on the 12/06/2016. Director's remuneration of general meeting. Further to your announcement, I I further to the announcement is by SAREUM 6CCT24577. That's alright. 737409. End of September two thousand sixteen, which is anticipated to generate for the company up to $88,500,000,000 together with a share of sales royalties under the company's final results of the year ended thirty fifth June twenty sixteen.

44:44 On the 11/02/2016, the company announced its various changes to the remuneration of the chart. In summary, in light of the significant significant anticipated return increased scale resulting from a licensing transaction, company poses toward each of doctor Mitchell and doctor Rita one of. In addition, it proposed the annual salary speech, directors of doctor Mitchell and Rita agreed at $1,575.05 and other doctor Margaret at 84%, representing increases of 50%.

45:31 Since when the company correctly saying it's $5,000,000. So for SARE $7.57. Nothing beyond that. The compounds have been returned. It's been in our possession for the last twelve months. Can you provide a bit of clarity around the financial issues there? Have have the power been renegotiated? Sir, sorry. I I I been repaid? I'm I'm going to need to summarize for the room. The question went back to an RNS dated the end of twenty sixteen, looking at a rebasing of salaries for Tim and John on the back of the licensing deal, which CPF negotiated with then ProNei then renamed Sierra for the drug.

46:28 And so the question was around effectively what has happened since, I guess. And the answer I mean, I'm I'm I'm not gonna go back into the ancient history other than to say that that decision was taken because prior to that, Tim and John had each agreed to a halving of their salaries at a time when the company looked even you know, looked to be very on its beam ends. And it seems to be a reasonable I mean, I'm I'm a firm believer that if if you're gonna make that kind of sacrifice for the company, then when times get better, then there should be a reward in it as well.

47:14 So that's so effectively, that the 2016 decision was was was based on on events that has gone on prior to that. So so so but I as I said, I don't I don't want to break over what is now seven year old history. So so one in the middle and then Sure. It's on the but just in case we don't So I think I can give you the history of that. I'm sorry. Mike, do you repeat that? The the question is to Mike Owen as to whether he is still involved with the advisory board.

48:03 I was originally a member of the scientific advisory board. When the fund became fully invested, I was asked to sit as an observer on the so called investment and divestment as an observer simply to provide some sort of continuity between science advice and the investment advice. I have well, two things. Firstly, there has not been a meeting that I've been invited to of that board for at least two years, point one. And point two, I have been recused from any and all correspondence documents, verbal or otherwise, discussions about 77.

48:49 They come they my conflict is obviously therefore putting up a wall. So all I know is what has come from discussions about Tim in particular with the MSCAN and the object. Thanks, Zakar. Perhaps I should just quickly summarize Mike's answer as well because he's a long way away from the mic. And that is that, Mike is no longer on the scientific advisory board. He does sit on the Acquisition Disposal Advisory Board, but has never taken part in any discussion or seen any papers regarding seven thirty seven, from the CPF side. So his own exposure to what's been going on with seven thirty seven is via the SAREUM board.

49:39 So just for the avoidance of doubt, I've had no unofficial in the pub or near else conversations with the English scandal. Absolutely. Hussan, did you have something else? Right. Yeah. It's it's just a comment on the the the about think, Michel's comment about the share price. As a shareholder, I would be worried if the board of directors actually is worried about the share price. What I would be concerned about is them not taking care of shareholder value, which is two different things. The share price can have different things affecting it, like market conditions, like sentiment, like anything can can happen.

50:28 The share price is not necessarily a reflection of what the shareholders see as a value of something. But the shareholder value, this is this is where it comes into like, that that's the concern, and this is where my concern comes in with just communicating what you're doing as a management to the shareholder. If we are aware of what they're working on, maybe we'd be a bit more comfortable even if we share part of that. Whatever. Any more questions in the room? Otherwise, we'll go to the IMC submitted ones. Just picking up on on that that very point about communication. If we go back to the COVID nineteen research project, we're extremely on the 07/01/2021.

51:27 The the narratives that came out of that, doctor John Reeder, was incredibly positive in that the results from our COVID nineteen research project are very encouraging to provide clear evidence of the potential of SPC one eight zero one to reduce the excessive inflammatory So that was based on the £174,000 government grant, and obviously, both at dexamethasone, the comparative and baricitinib.

52:33 Our outcome is affected as well, not more so, without toxicology stated issue. But then nothing. Yeah. Sorry. Just just repeat this. So the the question regarding 18 o one in COVID or associated cytokine storm activities. Yeah. I think the approach we've taken, you know, I think those comments were made pre vaccination and to a large extent, the COVID problem is not solved. It's still very much with us, but it's less of a critical issue at the moment. I think it's fair to say. The approach we've taken then is that with carrying out the Phase 1a trial in, healthy volunteers with SCC1801, that will give us the safety data and the information about potential doses that we could carry forward if there is a resurgence of COVID or other respiratory diseases that might respond to our molecule.

53:33 And I think the other issue to, just bring up about that is that clinical trials in COVID patients now would need to be very large and very expensive. And it's what you know, we're not in a position to carry out a trial like that at the moment, so we'd be looking to work with a partner if we were to take them off before we're in COVID. The data emanating from that can be used as a part of our data package for our potential licensing partner. Yes. It's probably just worth adding to that that, of course, subsequent to that, the government decided that agile funding would be restricted only to drugs which could actually be used in the market within twelve months.

54:19 So and, obviously, at the stage we were in at the time, that wasn't gonna happen. Oh, yes. Matt? Yeah. Can I ask the board of management team why they feel they've not been able to attract institutional interest? Preference comes to me regarding AIM. However, a company doesn't come beyond the investment on AIM just raised oversubscribed placing, attracting life science. That's why wonder why we're not even but we are at a position where we can attract those investors. Back there, what do we still do? Order to bring plenty of that's The question is, why do we still not have any institutional investors given where the company is?

55:09 My view of that, quite simply, is that institutions are probably not going to pay much attention until they see the Phase 1a data. As it it's we we we talk we're we're talking about the Rolls Royce with the new model coming out again. But hopefully, that situation will change once we're able to share those data. Yes, sir? Would you like to see any movement of one eight zero two going into studies next year? John? Yeah. I'll pick up on this. I mean, we're still working on the translational studies. We're really trying to understand exactly how the molecule works and therefore which cancers are most likely to respond positively against the molecule so that we can select patients who are likely to benefit.

56:05 That would add a huge amount of value in a Phase I trial because obviously Phase I in a cancer therapeutic is done in patients. So we're trying to build that understanding of how the molecule works, where it's likely to be most effective. It's still ongoing. Yep. I I hope we're in a position to push forward with it, next year, but I can't guarantee it's gonna be dependent on the results. Yep. Just seems that, like, you don't know, to be mentioned between here, like, a shareholder. I I just find that stuff's being put out there, but then the option will, like, patient put out to the shareholders. Yeah.

56:53 Shareholders made the comment that we've apparently made limited progress or at least communicated limited progress over the last two years. That's it's a fair comment. I think the you know, one of the issues with communication in general for us is maintaining commercial confidentiality. So, yeah, we're in a competitive business. We have to be careful about information that we give out that could be useful to the competition, you know, frankly. So that that does limit it limit what we can say to some extent. But I'd, you know, I'd tell you point. The I I think the other thing is, you know, clearly, STC 18 o one is our priority program, and the bulk of our resources are going towards that program at the moment at the moment, perhaps at the expense of eighteen o two.

57:47 Yes, sir. Mister Jim mister Jim's bill at the room. He's office. We're asking for better communication. I take on board about confidentiality, etcetera. Alright. But you've actually said things today that could have been out there, I. The 07/03/1970 review date. These are things that we want from Laura now. She's like, yeah, comments earlier on. Really like to avoid mismeeting. I know what to do. You know? So I'm invested.

58:40 Right. We need to align in the same. Just so we'll go, yeah, this is how we're gonna move forward. I'm not sure with colleagues' proposal, but he makes a very valid point. And I think this is for you guys to walk away from this and say, yeah, we are doing well. We know you are, but come on. Let's let's just ask it a bit. We're just sitting here watching SP, you know, finish. And yet, you you don't appear to be doing anything about it. That's that's my request to you. I don't know if we can go off the others, but that's my thing. I really like you guys to step up. Okay. Thank you. Thank you. And and, again, this is a comment from the floor on the theme of increasing communications and perhaps sort of a little bit more rah rah rah as and when we can.

59:35 Matt, I think you had a question? Yes. On 1892. So is it gonna say the studies are ongoing and active? Or what or are they stored? I think it's clarity around that. It'd really good. Just for experiments ongoing. Okay. Sure. With that, I see that we've reached 11:00, and and that I'm afraid has timed us out. So we won't be able to deal with questions that have been posted on on the IMC site. We will provide answers to those and post them in the usual way and notify through RNS when those are available. They will be on our website. But in the meantime, I just thank all of you for making the effort of of coming whether whether it's near or far.

1:00:28 It's always good to see you. It's always good to hear your comments, but at the same time, sense your your ongoing enthusiasm for the science in this company. And I very much hope that the events of the next year will lead us all to have some more smiles on our faces when we meet this time next year. So thank you all. Thank you, Mr. Chairman, and to the Board of SAREUM PLC. Please ask investors online not to close the session as we're now automatically redirect you for the opportunity to provide your feedback in order that the Board can better understand your views and expectations. This may take a few moments to complete, but I'm sure it'll be greatly valued by the company. On behalf of the management team of SAREUM PLC, thank you for attending today's annual general meeting, and good morning to you all.