Nedlands-based pharmaceutical company Pharmaust has initiated court proceedings against pharmaceutical wholesaler Advance Healthcare Group following its tumultuous annual general meeting.
The legal action emerged in a statement by Advance Healthcare.
According to Advance Healthcare, Pharmaust has claimed the chairman of the Advance Healthcare AGM did not accept as valid a corporate representative appointment sent by facsimile during the meeting. It is understood that the result of that decision, Pharmaust's 5 million proxies were disallowed in a series of crucial votes.
At the meeting, held earlier this month, shareholders approved a complex recapitalisation that could result in up to 80 per cent of Advance being controlled by Sydney investment fund Hawkesbridge Private Equity via a debt for equity swap.
Hawkesbridge sold its 11 per cent shareholding on the eve of the meeting to newly appointed Advance Healthcare chief executive Ken Atkinson.
Lying behind the fireworks is a battle over who controls Advance's core business, Cottman Australia, which is a major pharmaceutical wholesaler in Western Australia and South Australia with annual turnover of $96 million.
Advance stated in an announcement to the ASX that it believes the correct procedures were followed in the vote.
