(Alliance News) - Iodine maker Iofina PLC on Tuesday said it has not received a proposal from substantial shareholder Arron Banks to requisition a general meeting.
Banks has a 13% stake in Iofina.
The statement comes in response to a Twitter post and an article published on the Telegraph website stating that Banks requisitioned a meeting of shareholders proposing that Iofina's non-executive chair, Lance Baller, be replaced with an outsider, and that Banks and two of his supporters be added to the board.
https://www.telegraph.co.uk/business/2020/03/03/brexit-backer-arron-banks-launch-coup-iodine-producer-iofina/
The Telegraph said Banks is unhappy about Iofina's investment into hemp and its approach to debt, adding Banks wants Iofina to make more of its iodine-production capability during the coronavirus crisis.
However, the company refuted the reports. "The board believes that posting this type of information on social media, instead of by proper and legally permitted channels, to be wholly inappropriate and in potential violation of applicable law and regulation," it said.
In February, Iofina said that it is in the process of setting up IofinaEX, a business which will isolate specialty chemicals from hemp. The company has decided the best strategy will be to focus on the US CBD market, which is "highly" regulated and well-understood by Iofina, it said.
The stock was trading 6.0% lower at 22.00 pence on Tuesday morning in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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Iofina (IOF)