1-Page shareholder calls for new board, direction

One of 1-Page’s substantial shareholders, a subsidiary of Nedlands-based financial services firm Merchant Group, has called for the removal of the majority of the tech company’s board and a new direction for the business, after a year of poor performance on the share market.

The Silicon Valley-based online recruitment company listed on the ASX in late 2013, raising $8.5 million from investors at a price of 20 cents each.

1-Page shares were trading as high as $5.44 last year, however after a $50 million capital raising in October 2015 at a discounted $4.50 per share, the company’s stock plunged and has since failed to make a recovery.

At the close of trade today, its shares were worth 19 cents each.

Merchant Funds Management has proposed to remove all 1-Page directors except for Joanna Riley, Tod McGrouther and Michael Shen, and replace them with Merchant nominees Chris Mews and Mathew Walker as directors.

It is also proposing a new direction of the business, with Merchant managing director Andrew Chapman saying it made sense to invest the company’s cash in new opportunities rather than fund the existing 1-Page business, which is yet to deliver returns to shareholders.

“A lot of money has been poured into 1-Page’s talent acquisition business for more than two years now but we are still yet to see the results,” Mr Chapman said.

Merchant holds about a 6 per cent stake in the tech firm.

“You need to look no further than the company’s share price performance this year to know that the stock market has rejected the 1-Page business idea,” Mr Chapman said.

“We believe it’s now time to invest the company’s funds in new business opportunities.

“It’s not about distributing the cash to shareholders – we want to see those funds invested into business opportunities that will generate near-term profits and value for shareholders.”

He said Merchant wasn’t seeking to control the 1-Page board.

“We simply want to see directors in place that will take the company in a new direction with an improved likelihood of a return for shareholders,” Mr Chapman said.

“There is a significant cash balance remaining in 1-Page and we do not want to stand by and see it whittled away.”

In response, 1-Page said it would assess Merchant’s plan in order to ensure it complies with the company’s constitution and applicable laws.