QIN mutiny as sandalwood shareholders seek to overturn board

Disgruntled shareholders of sandalwood producer Quintis are seeking to remove the board after events even the company’s own chairman described as a disappointment.

Holders of more than 5 per cent of the company’s shares (ASX:QIN), led by entrepreneur John Allen and backed by major shareholder Frank Wilson, are seeking to overthrow the board and ‘clean up the mess’.

“Importantly, the group of shareholders seeking to change the stewardship of Quintis have significant grower support. Grower support is the backbone of Quintis and it is critical to the future success of the company,” revolting group spokesman John Allen said.

“As shareholders of a quality company with an excellent market-ready product in high demand, we need a clear plan to move this business forward for the benefit of all shareholder and stakeholders.

“The time has come for Messrs Gooding, Matthys and Groppoli to realise that their plans have failed and for a new leadership group to step in and clean up the mess.”

If those shareholders have their way, chairman Dalton Gooding will be shafted from the top job after himself calling the situation a frustration and disappointment at the company’s AGM.

Alongside him, Julius Matthys and Giovanni Groppoli would get the axe, to be replaced by John Allen, Craig Duncan and Robert Boshammer.

Less than 12 months ago, the company had described itself as driving towards a transformational year, but after two class actions, the termination of supply agreements and a research report comparing it to a Ponzi scheme, it perhaps wasn’t the transformation that it had hoped for.

Shares in the company have been suspended at 29.5c since May.

QIN announced a 13th update of their forbearance agreement with noteholders on Monday, an extension to January 12 as it looks to recapitalise.

At their AGM chief Julius Matthys cited grower confidence as the key to get back to revenues.

“First and foremost Quintis needs a cash injection… We therefore need cash reserves to get us through to our first big harvest in 2023 when we will start generating significant product sales revenues and can become self-sustaining.”