15/12/2017 - 15:15

Quintis chair under fire at heated meeting

15/12/2017 - 15:15

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Quintis chairman Dalton Gooding has come under fire from company founder and former chief executive Frank Wilson and other shareholders at a heated annual meeting today.

Quintis chair under fire at heated meeting
Quintis chairman Dalton Gooding.

Quintis chairman Dalton Gooding has come under fire from company founder and former chief executive Frank Wilson and other shareholders at a heated annual meeting today.

With more than 100 people in attendance, the Quintis board was questioned by disgruntled shareholders concerned by the company’s financial position.

Shares in Quintis have been suspended since May, after a damning report on the business by a US-based activist short-seller, Glaucus Research Group.

Shareholders voiced their concern that Mr Gooding was ‘stonewalling’ their questions, with the chairman blaming legal constraints for his inability to answer questions.

The company is currently attempting to recapitalise the business and is also facing two class actions related to disclosure issues.

It is believed that Mr Wilson is attempting a rival recapitalisation deal, however speaking after the meeting Mr Wilson would not confirm the proposal.

Mr Wilson took to the floor and queried Mr Gooding on whether the company would consider another recapitalisation offer on equal terms to the current proposal being considered.

Other shareholders raised concerns with the board’s remuneration, poor sales and negative announcements with one shareholder attempting to pass a motion of no confidence in the board.

Chief executive Julius Matthys said the company was in supply contract discussions, however agreements could not be reached until recapitilisation had occurred.

"We're in conversations with a lot of people who have said to us 'as soon as you're recapitilised we're at the negotiation table'," he said

"I can't guarantee the recapitlisation and I can't guarantee what happens after that but we have a strong view that we have a very valuable asset, we've got tremendous IP and we need to get through this period and recapitlise the company."

The company was recently thrown a lifeline after entering into a high-interest debt facility for $US 20 million.

Quintis also revealed last month that it had made a $416.8 million net loss for the year to June 2017.

Despite the negative line of questioning at the meeting, shareholders passed both resolutions with 75.21 per cent voting for the adoption of the remuneration report while 70.7 per cent voted in favour of re-electing director Michael Kay. 

 

 

 

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