16/11/2017 - 15:18

Shareholders take legal action against Quintis

16/11/2017 - 15:18

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Shareholders take legal action against Quintis
Quintis shares have been suspended since May

Quintis has revealed that a group of shareholders is taking legal action against the embattled sandalwood producer in relation to a supply contract with pharmaceuticals company Galderma.

In a statement to the ASX, Quintis said the legal proceedings also involved company announcements regarding its projected financial outlook.

“The proceeding … alleges that the company engaged in misleading or deceptive conduct, and breached continuous disclosure provisions of the Corporations Act 2001 and the ASX Listing Rules, in relation to the termination of a supply contract with pharmaceutical company Galderma and in relation to announcements made by the company about its sandalwood sales and projected financial performance in 2016 and 2017,” Quintis said.

Managing director Frank Wilson was also named as a separate respondent in the action.

The company denies liability and said it will defend the proceedings.

Earlier this week, Quintis said it would enter into a high-interest debt facility with existing lenders worth $US20 million ($15 million) and announced a net loss of $416.8 million for the year to June 2017.

Shares in the company have been suspended since May while it continues discussions with a number of parties over potential debt and equity transactions to recapitalise the business.

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