(Alliance News) - Frontier Smart Technologies Group Ltd said Tuesday that Non-Executive Chair Hossein Yassaie and Non-Executive Director Paul Taylor have decided to step down to enable shareholder Science Group PLC to withdraw its extraordinary general meeting request.
The company said Yassaie and Taylor will leave on Wednesday as their continued involvement in the audio technology firm "would hinder ongoing discussions" with Science Group.
Science Group proposed a Frontier extraordinary meeting which had proposals to oust both Yassaie and Taylor, but following their resignations, will no longer pursue the meeting.
Science Group also proposed adding its own Chair Martyn Ratcliffe as well as its legal counsel Sarah Cole to the Frontier board but the duo will not join the company until "certain strategic and financial matters" in regards to Frontier have been addressed.
On Wednesday, Frontier said conditions in relation to a credit facility with Clydesdale Bank PLC were met in the near term but it is in talks with the lender about future covenants testing. Science Group, however, said Frontier would benefit from a refinancing option which would eliminate bank covenant risk.
Science Group has been steadily building its stake in Frontier in recent months as it initially pursued a hostile takeover though Frontier said Science Group will now "maintain a significant minority shareholding, ruling out a statutory merger in the near-term".
Shares in Frontier were down 5.3% at 25.10 pence each in London on Tuesday. Shares in Science Group were trading 2.3% down at 186.10p each.
