Te Nakoto, Te Nakoto, Te Nakotokata, kō Anna Stove, aho. Chair of Rua Bioscience. Welcome to our annual shareholders' meeting, and thank you for joining us online from across Aotearoa, New Zealand. It's a pleasure to be able to deliver an update on our operations over FY 25 and what has been a pivotal year for the company. First, I'd like to call on Pānapa Ehau to open our hui with an opening karakia. Now, to close our hui with a quick introduction, I'd like to call on Pānapa Ehau to call on the company's shareholders, proxies, and guests to attend the meeting virtually. All attendees can watch a live webcast of the meeting and read the company documents associated with the meeting. In addition, shareholders and proxies have the ability to ask questions and submit votes. I'll now quickly take you through the online instructions.
If you would like to submit a question, the Q&A is always open, so please feel free to submit questions throughout the meeting. These will be addressed at the relevant time. Questions may be moderated, or if we receive multiple questions on one topic, we might amalgamate these together. Any questions not answered in time will receive an email response after the meeting. Voting today will be conducted by way of a poll on all items of business. I will now open the online voting for all resolutions. If you are eligible to vote at this meeting, you'll be able to cast your vote under the vote tab. Once the voting is opened, the resolutions will allow votes to be submitted. You can change your vote up until the time I declare the voting closed.
I'd like to introduce you to Rua's board of directors who are deeply invested in the Rua kaupapa. They possess a wealth of domestic and international business, pharmaceutical, and strategic expertise. I would like to thank all of them for their steadfast mahi during the year. I feel very privileged to be part of this incredible group of people who have all shown enormous strength. No matter what has been thrown at them, they have steadfastly focused on the best interests of the company. Rua's co-founder, Pānapa Ehau, was appointed to the board in October 2017 and is pivotal to our important links with the Tairāwhiti community. Teresa Ciprian was appointed as a director in August 2022 and has a wealth of experience in international marketing and business development. Tony Barclay was appointed as a director in May 2023.
Tony brings significant financial acumen, having been the previous CFO for Fisher & Paykel Healthcare, and also holds a number of medtech company directorships. Kale Panaho joined Rua as a Board Observer at the beginning of 2024. This is part of a program for aspiring Māori directors. Kale is an entrepreneur at heart, having started multiple successful technology businesses out of the U.S. and New Zealand. It's a real win-win. Kale's learning all about governance, and we're getting amazing input for our international and marketing strategies. We ensure that directors collectively have the appropriate skills required to oversee the company through key phases of business growth. The Board also reflects Rua's principles of diversity and inclusion. We follow the Maramataka lunar calendar or moon phases. We set our Board meeting dates accordingly.
The lunar calendar highlights the connection between the phases of the moon and our well-being and gives us the best days to ensure high energy and decision-making. I'm just going to outline our agenda for today. I will give you an overview of how we've moved from setting the right strategy to now executing it, growing revenues, expanding into new markets, and staying true to our unique purpose. Our CEO, Paul Naske, will dive more deeply into our operational highlights. Our CFO, Liam Walker, will take us through Rua's financial performance. In terms of formal business, we have four resolutions to put to the meeting: auditor's remuneration, re-election of Teresa Ciprian as a Director, ratification of issued shares, and issue of new ordinary shares. There'll also be plenty of time for questions. I'd like to confirm that we have a quorum and that 41,229,198 valid proxies have been lodged.
These proxy holders have been directed to vote: 39,703,426 shares in favor of Resolution 1, 38,148,345 in Resolution 2, 30,255,805 in Resolution 3, and 36,370,188 in Resolution 4. In addition, I intend to vote the undirected proxies that I hold in accordance with the Board's recommendation, being in favor of the resolutions, as do my fellow directors, Pānapa Ehau and Tony Barclay. Thank you, everyone, for your attention so far. I'd now like to move on to providing you with a brief company overview. FY 25 marked a pivotal shift for Rua Bioscience. With focus, determination, and the unwavering support of our people, we moved from setting the right strategy to now executing on it. As I said previously, growing revenues, expanding into new markets, and staying true to our unique purpose. Our highly scalable operating model, which is anchored in genetics and distribution, has translated into tangible results.
Customer revenue rose to NZD 1.5 million, and if you compare this to FY24 of NZD 86,000, and total revenue and other income reached NZD 1.9 million, whereas in FY 24 it was at NZD 322,000. For the first time, Rua generated meaningful sales across Germany, Australia, and Aotearoa, New Zealand, and established distribution pipelines in both the United Kingdom and the Czech Republic. At the same time, our financial performance strengthened. Loss before tax was reduced significantly to NZD 3.5 million, compared to FY 24 of NZD 13.7 million. This was driven by increasing revenue and disciplined cost management. These results demonstrate the effectiveness of our strategy and a sharp focus on commercial delivery. To sustain our growth trajectory, we successfully raised NZD 1.6 million from shareholders and approved a debt facility of which NZD 304,000 was drawn at balance date.
These capital initiatives were strongly supported by both existing and new investors, reinforcing confidence in Rua's direction and leadership. In response to cash challenges, the board and management applied disciplined cost control and proactively managed capital needs. You may have noticed in our annual report that due to financial cash challenges, the board set up a new cash review meeting and met with management an additional 34x to ensure that every dollar being invested was pulling the correct lever. Our capital raising approach was deliberate, directing funds to areas with the greatest commercial impact. With strong oversight and a clear focus on revenue-generating activity, the funds raised are now accelerating sales and supporting sustained momentum in the market. If I look back at the achievements over the last year, we've launched a new product in Australia, leveraging New Zealand's elicit genetics. We've expanded our German portfolio of products.
We've improved our alignment with leading clinic chains in Australia. We've increased our product range in New Zealand, and we've brought product to market in the U.K. for distribution with our new partner, Target Healthcare. Subsequent to the year-end, we have brought a new Rua product to the market in the Czech Republic, which creates our fifth market. It's incredibly encouraging to see that we are no longer a proof of concept and just filling the pipeline. We are delivering significant revenue growth. The first quarter of FY 24 has been our largest quarter yet, and Paul will share more information with you during his presentation. Although I have outlined today the great progress we have made in the last 12 months, you will have seen in our 2024 annual report, Rua's net liquidity position and ongoing cash operating losses are challenging.
If we're going to meet the company's ongoing liabilities and fund anticipated growth opportunities, I am announcing today that we will imminently be going out to the market, seeking to raise NZD 2 million of new equity. Managing cash flow this year has been an extraordinary journey. Rua has taken critical actions to support its immediate cash flow needs. We've been laser-focused on conserving cash. We successfully raised NZD 1.6 million from shareholders and approved a debt facility, of which I've already mentioned NZD 304,000 was drawn at balance date. Unfortunately, our unconditional offer from the Awaora Genesis Trust of NZD 1.3 million for the Gisborne manufacturing facility did not go through, and we have previously informed the market of this. That facility remains for sale, and we are negotiating with interested parties for a number of different options.
Rua intends to use the cash raised through the offer to fund working capital and marketing activities to support our growth opportunities. This includes new products in our key international markets of Germany, Australia, United Kingdom, and the Czech Republic. The cash raise is intended, if fully subscribed, to fund the business to a self-sustaining position. There will be a resolution later in the meeting on the issue of new ordinary shares that will allow the directors flexibility should it be needed. I will now invite CEO Paul Naske to speak.
Thank you, Anna. Tēnā koutou katoa, Paul Naske, I'll talk away now. As Anna mentioned, FY 25 was about continuing with our focused strategy and setting up sales channels in key markets that we can fill with our unique genetics from Te Tairāwhiti, New Zealand. During the year, we grew our revenue in the key markets of Australia, Germany, and our home market of New Zealand, and we also established new sales channels in the United Kingdom. We continued this mahi with the new sales channel established in the Czech Republic in the first quarter of FY 26. We now have 17 products across five markets generating revenue, and we continue to grow. This creates resilience, as we have now various independent revenue streams with this geographic spread.
Over the past two years, we've successfully reduced our operational overheads from over NZD 6 million per year in FY 23 down to NZD 3.4 million in FY 25. This significant reduction shows our focus on our capital light strategy. By minimizing unnecessary expenditure, we've been able to streamline our processes and reduce costs substantially. This strategic approach not only enhances our financial stability, but also positions us for sustainable growth in the future. At the same time, we've grown our sales revenue through our focus on establishing sales distribution channels in our key markets. We are pleased to report that our sales in quarter one of this financial year, 2026, are our largest to date, which is clear evidence our sales and marketing strategies are working well. All the medicinal cannabis markets that we currently operate in are experiencing significant growth.
Around the world, medicinal cannabis is growing in acceptance amongst regulators, prescribers, and patients as the medicine moves from unknown and new to more mainstream. The regulations in each country, though, are unique, and Rua has methodically been selecting key markets to operate in from the earliest days of the company. We've realized the importance of larger international markets to achieve scale, and in FY 25, we have seen this come to fruition with significant revenue starting to occur in three key markets. This has been very important to spread our risk for the company going forward. Now I'll take you through each of these key markets in a bit of detail. During FY 25, we consolidated and improved our position in the Australian market and significantly grew our sales revenue from NZD 84,000 in the previous year to NZD 585,000 this year.
The Australian market is definitely close to one of the largest medicinal cannabis markets in the world, close to or alongside Germany. It's a significant nearby opportunity for Rua, with growing acceptance of medicinal cannabis amongst prescribers, patients, and regulators. The data available shows that the number of units of medicinal cannabis products prescribed by doctors in FY 24 was 4.6 million units, and this is close to double the previous 12 months. Data for the full 12-month period in financial year 2025 has not yet been released, but it is expected to show considerable growth as the first six months are already well ahead of the previous year. Over the year, we have expanded our reach into new clinic chains and distributors. We are building on our unique story and brand to regularly communicate with clinics and distributors as we bring quality products to that market.
In Germany, Germany remains the largest and most developed medicinal cannabis market in Europe by a significant margin. FY 25 saw the medicinal cannabis market grow incredibly significantly with the establishment of a strong telemedicine market to meet patient demand. This follows on the heels of changes to regulations in April 2024 that allowed home cultivation and a removal of cannabis from the narcotic drug schedule. Rua was able to capitalize on this demand with our new products. A key metric that tells the story of market growth is the volume of imported product. In FY 24, the total volume of medicinal cannabis product imported to Germany was 37 tons. However, this has more than tripled to 135 tons in FY 25. Whilst imports are not the true metric for patient demand, this is a significant indicator of the market.
Rua brought new products to the market in July and December, and products were extremely well received. However, our sales were limited by the ability to deliver sufficient product to the market to keep up with the demand at the time. This was due to our ability to secure working capital to be able to place purchase orders for inventory at the time. Subsequent to the year-end, June 2025, in August, just recently, we also launched New Zealand cultivated products with the partnership of fellow kiwi companies. These products are especially important as they leverage New Zealand elicit genetics and establish kiwi credentials in Germany. In the United Kingdom, it is a market which holds a lot of promise for medicinal cannabis.
Currently, the market prescribes only slightly more than the total New Zealand market, but with a population of 69 million people, we expect further substantial growth in this market as awareness amongst doctors and patients alike increases. In FY 25, Rua introduced into the market three new oil products to be distributed through our distribution partner, Target Healthcare, and whilst sales of this product have been slower than expected, being active in this market has allowed us to review the product portfolio and clinic distribution networks. Plans are very well progressed for new supply channels of new products, which we are confident will be well received. During FY 25, we worked closely with suppliers and our distributor, Motogon, to establish the necessary regulatory information to be able to supply Rua products into Czechia.
The Czech market has approximately twice the population of New Zealand, and in April of this year, regulations changed, allowing general practitioners to be able to prescribe medicinal cannabis products. We expect, based on our experience in other countries, that this will significantly increase the number of prescriptions in the coming years. We are one of the very early entrants to this market, with products that we believe are well positioned to capitalize on this growth. We launched our first product in this market last month, and early indications are positive. In parallel with the export strategy, Rua is also, of course, seeking to bring products to the New Zealand market. Aotearoa is obviously a much smaller market, but extremely important to showcase our company to New Zealand doctors and patients.
The market in New Zealand continues to grow, with a total of 334,000 units of medicinal cannabis products prescribed in New Zealand in the financial year 2025 period, an increase of 23% on the previous year. During FY 25, we built upon existing networks to establish revenue from two new dried flower products to the New Zealand market. From this, we have achieved revenue of NZD 440,000, and we expect this to grow further in FY 26. An additional new product was approved during FY 25 and the first sales of this product occurred in August this year, increasing our revenue further. We have another two products being assessed by the Ministry of Health currently, and we expect these could be available for sale in 2026, although this is reliant on the Ministry of Health and their timeframes for approval.
I now want to talk briefly about our impact program and some of the things we are very proud of as a company. Medicinal cannabis in Aotearoa is a private payer medicine, meaning it is out of reach for many and not an option. Many patients with a genuine clinical need can simply not afford it. Our compassionate access program shares the benefits of medicinal cannabis with those in Te Tairāwhiti who are most in need. This is a program that is fully managed by Rua and funded by ourselves and others. This year, through the support of suppliers and partners in our international network, we have been able to help up to 52 patients every month in the region. Special thanks go to Schroll Medical of Denmark, Alpha Pharma of Malta, and Trust Tairāwhiti in our region for their support and funding to allow us to make this happen.
Another key element of our impact program is the scholarships. Rua's student scholarships are designed to celebrate the aspirations of local rangatahi and help them drive meaningful, sustainable, social, and economic impact in the community of Te Tairāwhiti. In the last year, we awarded 13 scholarships to local students, and since the inception of the program, we have supported 53 students from the region with the support of Trust Tairāwhiti. We continue to arrange industry exposure trips to Auckland and Wellington, as well as our own facility, and the purpose of these trips is to provide thought-provoking and challenging experiences to showcase potential career pathways for rangatahi in our region. With the support of Trust Tairāwhiti, we plan to continue working and supporting our rangatahi. Measurement of our greenhouse gas emissions is part of our sustainability framework, and it is being used to drive decision-making.
In FY 25, external auditor MyImprint completed a full greenhouse gas emissions report, and this is now the fourth year that Rua has been measuring greenhouse gas emissions. We're building our knowledge and systems around our greenhouse gas emissions, and we continue to make improvements. In FY 25, our scope one and two emissions, our more direct emissions from our company, have reduced slightly by 2.4% year-on-year. However, the significant contributor to our emissions is our scope three emissions, which are emissions that we indirectly contribute to, primarily through the purchasing of goods and services. This is now the second year that we have measured these scope three emissions, and it is clear that these emissions will remain a challenge for Rua. We will no doubt see increases to these emissions as our sales increase. As always, though, we continue to make improvements to our reporting and our measuring systems.
As we look forward to the remainder of financial year 2026, we have solid plans in place, and we're confident of revenue growth and expect to be upwards of NZD 3 million in customer revenue. As mentioned, we have already, in financial year 2026, established a sales channel into the Czech market, bringing the number of markets we are in to five countries. Our major focus in FY 26 is to grow the sales revenue in each of these markets through market share growth. We are working on pipelines in the markets of Poland and Switzerland, although at this stage, we are not expecting the revenue from these markets this year. These pipelines allow the platform to market Rua's unique brand proposition consistently and spread risk for the investor. I'll hand you over to Liam, our CFO, to give you a summary of Rua's financial results.
Thanks, Paul. Let's talk about Rua's year from a financial results perspective. Rua's loss before tax for the year to June 30th, 2025 was NZD 3.5 million. This loss was in line with expectations and a significant improvement on FY24. Revenue from customers climbed to NZD 1.5 million for the year as we re-entered the German and New Zealand markets and also had significant growth in Australia. In terms of our balance sheet, Rua's total assets were NZD 6.78 million, with total liabilities of NZD 1.89 million, resulting in net assets of NZD 4.89 million at year end. The company had cash on hand at the end of the year of NZD 241,000, with further shareholder support received after balance date of NZD 756,000 in inventory finance and NZD 504,000 in share capital.
With the growth plans over the coming financial year and working capital requirements to fund this growth, the company will require new capital to achieve this. In terms of where the cash was spent, net cash outflows from operating activities have decreased to NZD 2.79 million, down from NZD 3.74 million in FY 24 as a result of the growth in revenues and continued focus on decreasing operating expenditure. Net cash inflows from investing activities decreased to NZD 106,000 from NZD 2.21 million in FY 24. This was due to a lack of funds on term deposit during the year. Net cash inflows from financing activities increased to NZD 2.02 million for the year as a result of the issues of shares during the year, as well as the proceeds from borrowings to help fuel growth.
Over the past two years, we have successfully reduced our rolling 12-month average overheads from over NZD 600,000 per month in June 2022 to NZD 284,000 in June 2025. This significant decrease is a clear indication that our capital light strategy is yielding positive results. By focusing on optimizing our operational efficiencies and minimizing unnecessary expenditures, we have been able to streamline our processes and reduce costs substantially. This strategic approach not only enhances our financial stability but also positions us for sustainable growth in the future. As mentioned previously, with the entry into key markets during FY 25, the revenue has significantly grown to a total of NZD 1.5 million from customers and NZD 1.9 million in total revenue. The sales growth in the second half of the year was somewhat constrained due to a lack of available capital to ensure consistent product supply for the key markets.
This highlights the importance of capital for inventory to ensure that our sales can grow. With the increase in new products in new markets, we expect this revenue to continue growing. I will now pass you over to our Chair to open the floor for questions.
Thank you, thank you Paul and Liam. We'll now take questions specifically relating to the presentations. Please send your questions in via the Q&A tab on the right half of your screen. Just type into the field and press send. In the interest of time, we ask that you limit yourself to two questions. We'll of course accept further questions via email after the meeting. Paul, how are we going there for questions coming in?
Okay, first question is, when is the board predicting the business will be cash flow break even or better? I can probably answer that. We expect during FY 26 on a monthly basis to reach cash flow break even. That's on a monthly basis, not for the whole year, of course, at this stage.
Paul, that's also based on that we have a successful equity raise.
Assuming.
We're able to sell the manufacturing facility.
Yeah, assuming we get the necessary capital for stock.
Yep.
Okay, thanks for that, Anna. Next one is, is the demand for the company's products still exceeding the company's ability to supply based on working capital constraints? If so, what level of increased working capital is required for the company to meet our current and forecast demand levels? Good question. In terms of supply, we have no inability to supply based on the availability of supply. Working capital is key, and we will need the aforementioned NZD 2 million that we're looking to raise. If we get that and work on the building sale, that will be enough capital to get us through to the position that we need. Do you think that answers it?
I think that answers it.
Okay. All right, we have another question here. Will Rua Bioscience still be operating in 100 years from now?
Should we ask Pānapa, do you want to answer that question?
Yeah, great question. Rua Bioscience has really been built on the aspirations of having a generational impact. Whether that's Rua Bioscience that is operating in 100 years, or it's a derivative of it, or it is something else that's still encapsulating that kaupapa, is yet to be seen. What we are doing is creating pathways and capabilities for the next generations to be able to make really good decisions around economic development in the Rua Tore area. It's hard to see into the crystal ball, but what we're really focused on is creating capability within the community to be able to do that. If Rua is one of those mechanisms that the future generations choose for enabling that, then Rua will still be around. If not, they may choose more appropriate businesses and organizations to be able to do that.
If anyone loves from now until the next 100 years, let us know.
Thanks, Pānapa.
Next question. Apart from accessing additional working capital as part of the NZD 2 million capital raise just announced, are there any other known constraints to executing the company's growth plans?
No, it's all about cash.
I don't think so. No, it really is the cash required for the inventory with the current overheads that we have. We think that's fine. Okay, there's a number of statements. Next one. Why is the manufacturing building proving difficult to sell? I suppose I can answer that. In general, economic conditions in terms of property investment haven't been fantastic in the Gisborne area, but particularly it's a very, it's a bespoke building, to be fair, purpose built really for high hygiene manufacture. It really requires someone with a good solid business plan. There's a number of people who are working on business plans to utilize the building. To be honest, it's not a great big empty shed. It is a purpose built building for high hygiene manufacturers. We're looking for the right owner. It's pretty much the major reason. I hope that answers the question on that one.
Next one. Congratulations on reaching a point of sales acceleration across several markets. Question. What is your level of confidence to execute a sale of the facility before cash runs out?
I think the hope, I'll jump in here, Paul. I think the hope is that we raise capital imminently. That gives us a bit of a bridge in case the facility does not sell. It's very hard with property to be able to say we're going to do it by X date. We thought it would have sold by now. We've had, as you know, we've had one unconditional offer that fell over. We are hopeful because there is still a lot of interest in it.
Yeah, I think the only thing I'd add to that is general economic conditions improve around the country. You can see some, you know, green shoots on the horizon. Things are starting to happen, certainly in the region. We're sort of hoping that that sort of accelerates it to some degree. Really hard to put a date on it, to be honest. Hope that answers the question. Now there's another one. When will the just announced capital raise likely open? What likely form will it take? Rights issue, placement, or other? We're just finalizing that.
We're just finalizing that. We will come out very soon to let you know all that information. We are imminently going to do it.
How was the trade trip to Europe? Any leads? And impact on sales? The trade trip to Europe was excellent. Always good to get into the market and meet people, catch up with customers. Yes, there are some very strong leads, which we are working on. Nothing yet to announce, but without a doubt, there are definitely irons in the fire. That's probably all I can say. The markets up there are large, growing, exciting, and it adds a lot of credibility when you're in the market speaking to people face to face. We're expecting some things to come of that. All right. Now, the Shareholders' Association has some statements. There's no disclosure as to whether directors are required to own shares. NZSA policy is whilst this should be encouraged, it should be up to each director to decide depending on their personal circumstances. We note all directors own shares.
Can you please comment?
I think all directors on the board do own shares, and it is totally an individual decision by each director whether they buy them or not. Obviously, when they do or when they sell them, the market is notified.
All right. Thank you. Confusingly, the table detailing CEO remuneration includes headings related to SDI and LTI, even though there is no current scheme in place. NZSA encourages the company to simplify this disclosure in the future.
Yeah, really good point. Thank you.
NZSA encourages fulsome disclosure in relation to any incentive payment made to the CEO, including disclosure of measures or measure groups, weightings, targets, and the level of achievement versus target for each component associated with any awards. This methodology is supported by the new NZSA remuneration reporting template. Thank you. That's no question there. A statement. Rua does not disclose the gender pay gap or CEO employee remuneration ratio. Can you please comment? No, we don't.
No, we don't disclose that. I think we have.
We've got the ratio of male to female in the company and on the Director board, but no remuneration ratio.
No, no remuneration. That is something we will take on board, and I think Teresa heads up the Remuneration Committee. That is something, Teresa, maybe we just take on board to put out there. It is something we look at, but no, we haven't disclosed it.
Golden parachutes. In the interest of transparency, NZSA believes that there should be explicit disclosure around the severance terms and notice periods associated with the CEO, including whether specific termination payments are offered. Rua makes no disclosure. Can you please comment? I don't have any.
No, there are no golden parachutes in your contract.
No, I'd have to check, but I don't think so. No.
I like that terminology.
Yeah. Right, that's a comment statement, so I won't bring that one up. Okay. Rua is holding a virtual meeting. NZSA prefers a hybrid meeting, physical and virtual, as a way of promoting shareholder engagement while maximizing participation. Shareholders should have the opportunity to meet with directors, the CEO, and senior management on a face-to-face basis. The company has almost 2,900 shareholders. We encourage the board to consider rotating to a physical meeting to centers where shareholders reside. Discussion with the company has noticed that they're focused on preserving cash this year as Rua generates revenue opportunities. Last year, NZSA noted the separate site open day held by Rua, recognizing the role they play in the community. While laudable, it is difficult to see this as a substitute for shareholders to engage with the company. Can you please comment?
I think that is a really good point, and 100% the reason for it is just cash constraints. I think next year, when we move to be in a more sustainable position, we will be able to open this up at a hybrid meeting.
Right. Just a comment of acknowledgement. We note the company has appointed Kale Panoho as Board Observer and congratulate the company for this initiative to mentor and develop the next generation of directors. NZSA believes it is important for NZX companies to take responsibility as part of their ESG commitment. The nature of the company's board indicates a commitment to thought, experiential, and social diversity with relevant experience for Rua. Thank you. Sorry, there was no question in that. I've just heard you're limiting questions to two per person. We represent a significant amount of shareholding. Thank you to the NZSA for all those comments, questions, keeping us honest. Thank you. Look, there's no other questions, Anna.
No other questions?
No other questions.
Thank you for all those questions and comments. If you think of any more, please obviously do send them through. We'll now consider the resolutions, which I trust you've all had time to review. We've got four resolutions to put to the meeting: auditor's remuneration, reelection of Teresa Ciprian as a Director, ratification of issued shares, and issue of new ordinary shares. Resolution 1, that the board be authorized to fix the auditor's remuneration. Note that PricewaterhouseCoopers is automatically reappointed as auditor under Section 207(t) of the Companies Act 1993. This resolution authorizes the board to fix the fees and expenses of the auditor under Section 207(s) of the Companies Act 1993. I'll now take questions on Resolution 1.
I'll just refresh, just in case, but no questions.
No questions. If there are no questions, I'll ask shareholders, if you haven't already, to cast your vote on Resolution 1. Moving to Resolution 2, that Teresa Ciprian is reelected as a Director of Rua Bioscience. Teresa retires by rotation and offers herself for reelection. The Board has unanimously determined that she continues to bring valuable skills, experience, and judgment to the Board and strongly supports her reelection. Teresa joined the Board in August 2022. She brings extensive governance and senior management experience across listed companies, state-owned entities, family enterprises, and privately held businesses, spanning consumer packaged goods, agriculture, horticulture, IT, regulatory bodies, and agri-research. Teresa is recognized for her role in elevating business strategy, marketing, and the consumer as a driver of business transformation, refreshing innovation pipelines, and embedding high standards of compliance and governance.
Teresa's prior boards include Zespri, Food Standards Australia and New Zealand, First Light Foods, and AgResearch. I will now ask Teresa to say a few words.
Thank you, Anna, and to my fellow Directors and our shareholders. It's been a privilege to serve Rua, and I offer myself for reelection because I believe the next chapter of the company is both challenging and full of opportunity. I bring to the Board a combination of governance, experience, and commercial acumen, gained through working in highly competitive regulated industries that have achieved market leadership. Including my first term with Rua, I've supported businesses that needed to scale quickly, deploy capital effectively, remain compliant, and stay connected to the consumer. That balance is critical for Rua right now and into the future. Looking ahead, there are three key areas where I'll continue to add value. Firstly, market and consumer focus, ensuring Rua's strategy is aligned with the needs of international buyers and patients, and helping guide the positioning required to succeed.
In governance, supporting management to stay commercially focused while maintaining high standards of compliance, transparency, and integrity. In strategic innovation, helping to ensure Rua's innovation pipeline is market-led and globally informed, so we're not just making products; we're delivering tailored competitive offerings. I remain strongly committed to Rua's kaupapa and commercial goals, and I'm confident that with the right focus, we can achieve the scale and impact we're aiming for. I would welcome the opportunity to continue contributing to Rua's next phase, and thank you for your support. Nama hinui.
Thank you, Teresa. I'll now take questions on Resolution 2, if you can refresh that.
Yes, I'll refresh, but there's nothing coming up.
Nothing coming up?
Nothing coming up.
Okay, if there are no questions, I'll ask shareholders, if you haven't already, to cast your votes on Resolution 2. We now move to Resolution 3. During FY 25 and in recent months, the company has issued shares and warrants to assist with obtaining sufficient capital to purchase inventory for continuing operation and sales. This was done by way of private placement under NZX listing rules 4.5.1. We are seeking shareholder approval to ratify the placement of these shares and warrants, as this will subsequently provide the board flexibility to issue new shares should this be required in the future. I'll now take questions on Resolution 3.
No questions.
No questions. There being no questions, I'll ask shareholders, if you haven't already, to cast your vote on Resolution 3. We now move to Resolution 4. The board is seeking prior approval from shareholders to issue further shares in the company should this be required. The just under 50 million shares is 20% of the total shares and warrants currently on issue. Last year, you'll probably remember the board received a similar approval, although it was not required to be used. We are again seeking this approval to retain flexibility should it be required. I'll now take questions on Resolution 4.
We do have a question. Resolution 4, do all directors plan on participating in the upcoming equity raise?
I don't think we've had that discussion yet at a board level until we know exactly what it's going to look like, which we'll know hopefully in the next couple of days. We will meet then, and we will obviously disclose which directors.
Absolutely.
Tony is Chair of Audit and Risk.
I think per the New Zealand Shareholders' Association comment before, it really does come down to individual director choice as well, but I'm sure each director will give it full consideration and make an appropriate personal decision.
Absolutely. No other questions.
No other questions.
Okay, there being no other questions, I'll ask shareholders, if you haven't already, to cast your vote on Resolution 4. That now concludes our discussion on the items of business, and I will close the voting online very shortly. The results of these votes will be released to the stock exchange later today. Thank you. Voting online is now closed. We will now take questions on general business from shareholders and proxies. Anything else come through?
No, nothing's come through. I'll just refresh one last time. No.
Nope.
Nope.
Okay, so there being no further questions, I will call Rua Bioscience's Annual Shareholders Meeting to a close. Before I do that, I will ask Pānapa to formally close the meeting with a closing. To Paul, our management team, and fellow directors, thank you for your dedication, focus, and commitment to delivering on our strategy. Together, we look forward to building on this momentum in FY 26. Thank you to all of you for attending online today. I will now formally close the meeting.