Manalto directors jump overboard after scrapping Bambu acquisition
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The entire board of social media manager Manalto has resigned after scrapping its acquisition of digital marketer Bambu.
In a late announcement on Friday, Manalto (ASX:MTL) said it had reached a “mutual agreement” not to proceed with the acquisition of Bambu.
“The focus of the company will be Manalto’s core business of the Manalto product which was re-launched in June 2017,” the company said.
Outgoing chairman Jim McKerlie, also chief executive of Bambu, was appointed to the role in January this year and was touted as key to the execution of the company’s turnaround strategy after the company reached rock bottom late last year.
Manalto originally launched as a social media management tool for franchises but a failed cloud distribution platform saw the company revert to the original product as a smart marketing platform in June.
The software allows businesses to centrally publish content and update brand assets across multiple social media pages and platforms.
The $2.5 million acquisition of Bambu was initially heralded as a means of providing greater scale and diversification.
“Acquisition will create a broad-based software development house and distributer of business software products,” MTL announced in April.
“The merger of the business will create a broad-based software development house focused on delivering business solutions for SME businesses around the world.”
As well as Mr McKerlie, Paul Gardner and Michael Quinert also resigned from the board.
In their place, James Ellingford, Terence Clee and Tim Wilson have been appointed and Elizabeth Hunt as company secretary.
“In the coming weeks, the incoming directors will be conducting a comprehensive review of the company’s business and future prospects,” the company said.
“The incoming directors are experienced technology and finance professionals who are optimistic about Manalto’s products and the prospects for Manalto’s future.”
MTL made a $US6.8 million ($8.5 million) loss in the last financial year, largely attributed to the wind up of its marketing platform Soshlr.
The company made $152,239 in sales and had $381,724 in the bank at the end of the period.