Genetic Technologies directors quit, open the door to blockchain rebel group
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Rebel shareholders wanting to turn Genetic Technologies into a blockchain business have got their way: the hold-out directors have resigned.
Dr Malcolm R. Brandon and Grahame Leonard have resigned as directors with immediate effect, and the company went into a trading halt.
CEO Eutillio Buccilli has not, however.
Director Paul Kasian is aligned with the group that wants to take over Genetic Technologies.
A meeting on January 31 will still allow shareholders to vote on resolutions to remove Mr Buccilli and replace the three directors with DigitalX (ASX:DCC) directors Samuel Lee and Peter Rubenstein, and Jerzy Muchnicki.
Mr Lee runs Blockchain Global, which counts Mr Kasian as a board member.
The proposed directors are backed by MEP and TonyBet founder Antanas Guogo, former mining magnate Joseph “Diamond Joe” Gutnick, Howard Rabinowitz, TonyBet CEO Ugnius Simelionis, and a company called MJGD Nominees which lists George Muchnicki as a director.
Mr Guogo told Stockhead earlier in January that their plan had growing support from existing shareholders.
As at December the group owned a combined stake of just over 5 per cent of Genetic Technologies, but Mr Guoga said he’d been buying extra on market.
Mr Rubenstein and Mr Lee want to ditch the company’s breast cancer diagnosis technology and instead turn it into a blockchain medical data company.
Genetic Technologies’ (ASX:GTG) Nasdaq listing is a key attraction for the rebel group, as is the fact that the board put it up for sale last year after struggling to turn the business around.
The company’s shares last traded at 1.6c. Genetic Technologies’ value has surged since the blockchain group announced its intentions in December.