Whodunnit solved as ASX detectives reveal motive behind Manalto board spill
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Information dug up by the ASX has forced social media manager Manalto to admit that investor EverBlu was behind its recent board spill.
Last week Manalto’s (ASX:MTL) new directors said they were unable to say why the old board quit en masse.
That wasn’t good enough for the ASX, which produced evidence from EverBlu’s own lawyer that it bulldozed the board into resigning.
“ASX has received information that Jim McKerlie, Paul Gardner and Michael Quinert appointed James Ellingford, Terence Clee and Tim Wilson as directors of MTL and then resigned themselves as directors of MTL after receiving an ultimatum from EverBlu (delivered by email from a solicitor acting for EverBlu) requiring them to do so.
“Among other things that email stated: ‘Everblu is prepared to undertake to provide ongoing funding support to ensure that Manalto can pay its debts as and when they fall due, subject to all of the existing directors of Manalto immediately resigning and being replaced by nominees of Everblu.
” ‘We are further instructed that, if the existing directors do not appoint nominees of Everblu as directors of Manalto and then immediately resign no later than 5pm Sydney time on Friday, 15 September 2017, Everblu intends to secure support of shareholders holding at least a 5 per cent interest in Manalto to requisition a meeting under Section 249D of the Corporations Act to make these changes’.”
On Tuesday, EverBlu chairman Adam Blumenthal revealed that two companies he controls had amassed a 12.07 per cent interest in Manalto by June 5.
Mr Blumenthal founded Creso Pharma, where Mr Ellingford is also a board member.
The new directors confirmed the ASX had it right.
EverBlu would honour a promised $550,000 injection by the end of this week, and provide up to $3 million in financial support.
The ASX also asked for confirmation that EverBlu had paid for the 6 million shares and 25 million options it had bought via a capital raising earlier in the year.
It had — via 34 separate payments between April 13 and August 21.