Rebel shareholders back down from PureProfile board stoush
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Rebel shareholders have stood down from their bid to overthrow the board of PureProfile after accepting cash payments to cover their outstanding debts.
Former owner of the company’s Cohort acquisition, Oceania Capital Partners (ASX:OCP), earlier this month told shareholders the chairman had to go.
It requisitioned a meeting of shareholders and proposed a new board – but today withdrew its notice, taking instead a lump sum payment of $500,000 and a newly-made place on the board.
“Under the terms of settlement, the company has paid to the Cohort vendors a full and final sum of $1 million for the remaining Cohort earn out consideration,” PureProfile told the market.
“In consultation with OCP, the board will also look to appoint an additional director and the request by OCP to convene a shareholders meeting has been withdrawn.”
The move sets the Cohort earn out payments to rest – a point of contention since back in August last year.
OCP had originally put forward former Cohort chief Marcelo Ulvert as chairman in the place of Andrew Edwards, but did not divulge who their representative on the board would be.
“OCP further advises that PPL has also agreed to appoint an additional director to its board and, with a view to delivering long-term value to its shareholdings and to all shareholders, OCP is entitled to be involved with the nomination of that director,” it said.
The company allegedly withheld payment of $1,363,274.15 to the Cohort vendors, including OCP and MDJU Number 1 Pty Ltd, which is an entity associated with chairman candidate Marcelo Ulvert.
At the acquisition of Cohort in 2016, PureProfile was trading at 54c. On Monday the stock closed at 13c, up 4 per cent.
In retaliation for the attempted board shuffle, Mr Edwards told investors it was not his leadership but rather the poor performance of the Cohort acquisition that was at fault.
“While the board and senior management accept responsibility for the acquisition itself, Pureprofile’s rights against the vendors in relation to information they provided to Pureprofile to induce it to transact and their conduct while managing the Cohort business during the earn-out period are strictly reserved,” it said.