Capital Mining’s new board is about to ask investors for yet more money
Mining & Resources
Capital Mining is expected to head back to the market to raise more money. Pic: Getty
Beleaguered executive Anthony Dunlop has finally quit the board of Capital Mining.
Mr Dunlop is said to have departed for Malaysia with his family, although colleagues and staff at his other companies, listed investor Chapmans (ASX:CHP) and Reffind (ASX:RFN), believe he may still be in Sydney.
Mr Dunlop’s phone is no longer registering an automated message saying it is switched off or not in a service area, as it was last week, and is now going through to an answering machine.
It rose to prominence last year when the ASX questioned why the company was paying millions to directors — including Mr Dunlop — in fees.
Capital Mining now has a new board consisting of Sydney-based IT businessman Christian Sese and Russian resources experts Artem Fedula and Alexander Krasnikov.
Mr Fedula and Mr Krasnikov work for Malaysian investor ADP Capital, which lists Chapmans as one of its business and funding partners.
They say they plan to keep Capital Mining in the resources sector and restructure the business over the next three months.
They are planning to raise more funds from the market to recapitalise the business, but will have to tell a good story to investors who have experienced the company’s past mishaps.
Problems at Reffind
Things appear less-than-rosy at another of Mr Dunlop’s companies, Reffind.
Chapmans sold half of its stake in the company in May and is no longer a substantial shareholder. CEO Tim Lea quit last month.
He was appointed in December 2017 after a year-long fight for control over the company resulted in Chapmans taking over.
Mr Lea said he couldn’t comment on why he resigned, but he left on September 7.
In announcing Mr Lea’s departure, Reffind also said it was cutting costs in order to conserve cash.
Reffind rose to prominence late last year with an investment in US blockchain loyalty play Loyyal.
In its preliminary full-year accounts in August, Reffind said revenue sank 62 per cent to $211,180.
Cash holdings almost halved from $2.5 million to $1.5 million — but so did the loss from $2.7 million to $2.3 million.
Reffind’s flagship Wooboard product made less money for the company in 2018 than in 2017.
Reffind shares opened flat at 0.9c and have been flat-lining since earlier this year.