Rebel shareholder says PureProfile is a ‘company in turmoil’; targets chairman
Rebel shareholders of digital researcher PureProfile say the company is in “turmoil” and the chairman needs to go.
Oceania Capital Partners (ASX:OCP) owns through a subsidiary 7.7 million shares in PureProfile (at least 5 per cent) and last night announced its intention to remove chairman Andrew Edwards.
“When Edwards was appointed chairman the share price was 45c,” Oceania Capital said in an ASX announcement released on Tuesday.
“It is currently 13 cents. Shareholders have lost approximately 70 per cent of their value over that time.”
Oceania wants to replace Mr Edwards with its own representative Marcelo Ulvert, a former CEO of Cohort — a company Oceania sold to PPL in 2016.
In its announcement, publicly released by the ASX, Oceania has pointed the finger at an alleged absence of management, citing the abrupt departure of former PPL founder Paul Chan in early Feb as well as the leaders of both of the company’s key acquisitions of SparcMedia and Cohort.
“Whatever reasons may be given, it is alarming that both businesses have been denuded of crucial leadership under Edwards’ stewardship,” OCP said.
“There are no key historic founders or leaders in any of the company’s underlying businesses.”
In the last month, the company (ASX:PPL) has dropped to its lowest levels since listing in 2015.
On Wednesday, it opened down 15 per cent at 11c, dropping as low as 8.7c in the past week.
“Inadequate forward planning for the payment of the balance of the Earn Out for the Cohort acquisition led the Company to enter into a series of onerous funding transactions leaving it exposed and vulnerable,” Oceania said in yesterday’s ASX announcement.
In a response to the statement, PureProfile told investors it would call a general meeting of shareholders to consider the request.
“The company is considering its legal position and will keep the market informed of all material developments concerning the requisition received and the previously disclosed dispute with the Cohort vendors,” PPL said.