LONDON (Alliance News) - Sefton Resources Inc on Wednesday said it will make an announcement on Friday that it hopes will clear up the current confusion surrounding the company's board and future.
Troubled Sefton bowed to pressure from certain shareholders in September by ousting its board and bringing in the two heads of financial website ADVFN PLC, but it has found itself in a tricky situation as its nominated adviser refuses to work with the new board, leaving the company in danger of delisting from AIM.
Three shareholders, including former Interim Chairman Daniel Levi, requisitioned a meeting to remove the entire board of the company apart from Executive Chairman Jossy Rachmantio. The requisitioners were seeking to bring in Clement Chambers as interim chief executive officer and Michael Hodges as a non-executive director of the company.
Chamber and Hodges are co-founders and CEO and executive chairman, respectively, of ADVFN.
Sefton caved in, and the entire board has now left, leaving Rachmantio together with Chambers and Hodges. Those board changes still need approval from shareholders.
However, Sefton's nominated adviser, Allenby Capital Ltd, refuses to work with the new board and said it would resign if the proposed board changes take place.
Under AIM rules, Sefton shares would be automatically suspended if Allenby Capital resigns, and then Sefton would have one month to source a new nominated adviser to replace Allenby Capital before its shares are cancelled.
Chambers and Hodges had a replacement lined up to replace Allenby, alleviating concerns for a short while, but on Monday, shareholders were dealt a blow when it said the prospective nominated adviser it intended to appoint to replace Allenby had pulled out.
Allenby has said it will continue to act and support the company's current board. However, it has said it will resign if or when the proposed board changes happen. If those board changes are approved by shareholders, Non-Executive Director Tom Milne and Keith Morris will resign. Sefton's Chief Financial Officer Raylene Whitford decided to resign for "personal reasons" on Monday.
On Wednesday, Chairman Rachmantio said he will meet proposed Interim Chief Executive Chambers to discuss the proposed board changes, which will then be discussed with the entire board before an announcement is made on Friday.
The "key matters" that Rachmantio and Chambers will discuss include the timing of the proposed changes, the future strategy of the company, the date the annual general meeting will be held to vote on the board changes, and the all-important discussion surrounding who will replace Allenby if it resigns.
Sefton shares were down 0.7% to 0.0298 pence per share on Wednesday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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