Australian Stock Exchange-listed brake manufacturer Safe Effects Technologies has undergone a major board restructuring, replacing chairman Tom O’Brien with former South Sydney Council mayor Vic Smith.
It has also added David Field and John McClelland as non-executive directors and Vin Morley as executive director.
Mr Morley has been the business’s CEO since 2002.
SET corporate manager Barry Padman said the aim of the changes was to find people with experience in growing companies.
However, it is still a way to go before SET starts on the real growth trail.
The company has been suspended from trading on the ASX since August.
Earlier, Hood Group Holdings, underwriter to the company’s $5 million rights issue, failed to come through with the issue’s $3.6 million shortfall.
Mr Padman said the company was still considering whether to take legal action against Hood.
The issue had been to raise funds for a manufacturing facility in Thailand that was to support the company’s move into the US.
Another hindrance to the company has been the 49 per cent shareholding of Safe Effect Technologies International.
SET launched a takeover of SETI last year, but despite the 90 per cent SETI shareholding in favour of the takeover, failed to succeed because it had not become relisted. SETI’s directors had put a defeat clause into the deal, saying they would not back the takeover unless SET had its ASX suspension lifted by June 30.
That condition was not met.
Mr Padman said the company was heartened by the response to its takeover and would possibly consider another takeover tilt further down the track.
The company is in negotiation with a partner to introduce its technology into China.
It has also announced its first product – a brake for Toyota LandCruisers.
SET produces ‘wet brakes’. The brake mechanism operates in fluid, reducing wear, improving heat dispersion and, potentially, improving brake performance.
