(Alliance News) - Nanoco Group PLC on Tuesday called for a general meeting on August 14 responding to the shareholder requisition of a general meeting, and argued that shareholders should vote against all proposals.
The quantum dots manufacturer said that shareholders should vote against all resolutions proposed by investors that called for the removal of the company's board on June 28.
Nanoco said that the proposals of the requisition would represent "a total change of control" of the company and provide no takeover premium, arguing that those calling for a requisition were seeking control of the USD90 million Samsung litigation cash.
The company argued that it was at a critical inflection point, transitioning from a research & development first mover to a producer of next-general quantum dot materials in the short term, and that the requisition would prevent this.
Chair Christopher Richards said: "The resolutions proposed by the requisitionists are not in the best interest of shareholders and would give undue influence and control to one small, disgruntled group of shareholders, who only own 5.02% of the company."
The requisition was spearheaded by shareholder Tariq Hamoodi who argued that minority shareholders seemed to be acting on information that wasn't available to other shareholders or the market more generally.
Hamoodi's requisition proposed the removal of the group's current directors, including its chair, chief executive officer, chief finance officer and chief technology officer with effect from the general meeting.
"The Board changes proposed by the requisitionists would result in the new Board gaining complete control of your cash, the net Samsung litigation proceeds of USD90 million, having spent only a fraction of that to acquire control of the business," Nanoco said.
Nanoco said these proposals would be "damaging and disruptive" to the company, and would result in an exodus of "key talent", including Co-Founder and Chief Technology Officer Nigel Pickett.
Chief Executive Officer Brain Tenner said:" The requisitionists' proposals would destroy the significant potential value within Nanoco's organic business and risk turning Nanoco into a highly speculative litigation shell company, whilst also risking the majority of future value being lost to third parties."
Shares in Nanoco were up 1.4% at 18.76 pence each in London on Tuesday morning.
By Will Neill, Alliance News reporter
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