(Alliance News) - A substantial shareholder of Remote Monitored Systems PLC who had been agitating for change on Wednesday welcomed the company's decision to shake up the board and put a recent issue of share warrants to a general meeting vote, calling the moves a "positive" conclusion to what had become upward spiralling dispute.
Gareth Cave said Wednesday he "considers this to be a positive response by the board to shareholder concerns and concludes his discussions".
Back in August, Braveheart Investment Group PLC sold its 52% stake in Pharm 2 Farm Ltd to Remote Monitored Systems. As part of the transaction, Remote Monitored Systems issued 289.6 million shares to P2F founder Cave, giving him a 17.7% stake.
P2F uses a patented process for producing and functionalising nanoparticles for various applications including human, animal and crop health.
Remote Monitored Systems also has a majority interest in GyroMetric Systems Ltd, which develops monitoring and safeguarding systems for rotating shafts, such as on wind energy turbines.
On Monday last week, Cave announced his intention to vote against that issue of warrants to participants of Remote Monitored Systems' December share placing, which raised GBP5 million. He also announced plans to requisition a general meeting to "consider board changes to improve corporate governance". He said he had support from shareholders representing another 18.7% of the company.
In response, Remote Monitored Systems had noted concerns by shareholders regarding the scale of the placing as well as about potential dilution that may result from the future exercise of the warrants being issued to placees. In response, it said it will engage with the placees in order to seek to restructure the warrants with the intention of reducing the potential dilution to existing shareholders.
Remote Monitored Systems' advisers SP Angel Corporate Finance LLP then organised a virtual meeting to enable Pharm 2 Farm Director Alex Vergopoulos and Egremont Capital Ltd to speak with the board.
Remote Monitored on Wednesday said it will appoint Vergopoulos as an executive director of the company with responsibility for Pharm 2 Farm. It added the appointment - which will be reviewed after three months - will give the board greater oversight of the performance of P2F.
The company also said it is proceeding with the hire of two new non-executive directors, one of whom is expected to become chair, replacing Paul Ryan who will step down at that time. Additionally, Executive Director Trevor Brown will become a non-executive director. Brown is chief executive officer of Braveheart Investment Group.
Remote Monitored also said it will convene a general meeting early in the new year in order for shareholders to consider approval of the placing-related issue of warrants.
Shares in Remote Monitored Systems were trading 0.3% lower at 1.31 pence each on Wednesday afternoon in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.