(Alliance News) - Nanoco Group PLC on Monday noted a report recently published by proxy advisory Glass Lewis & Co which recommended investors vote against all general meeting resolutions, which is set to take place next week.
The quantum dots manufacturer said this includes voting against all resolutions to remove the current board and against proposed director nominees.
Nanoco said this was in addition to Institutional Shareholder Services on Wednesday last week recommending against resolutions to remove the board and to appoint nominees Tariq Hamoodi, Greg Moeller, Dooyong Lee, Benjamin Barnett and Ikchoon Tim Kang.
On Monday, Nanoco said it is firmly of the view that the changes proposed by Hamoodi are "not in the best interests of the company or its shareholders" and accused his "unfounded" allegations of creating a "false narrative" which misleads Nanoco shareholder.
Nanoco argued against the changes, believing the company to be at an "exciting inflection point" as its legal battle with Samsung Electronics Co has now concluded.
"The requisitionists continue to fail to present a clear, coherent and credible strategy, [and] delivering shareholder value needs an experienced and qualified board - none of the requisitionists' nominee directors have ever served on the board of a UK public company," Nanoco said.
Nanoco argued the attempt for board control is tantamount to a "backdoor takeover attempt".
"The requisitionists' proposals will destroy the significant potential value in Nanoco's organic business, risk turning the company into a highly speculative litigation shell, and will result in an exodus of key talent from the business, including Dr Nigel Pickett, the group's co-founder and chief technology officer," Nanoco said.
The company urged shareholders that they "have a lot to lose" if they did not vote against the resolutions.
Shares in Nanoco were flat at 18.00 pence each in London on Monday afternoon.
In late July, Nanoco said that the High Court of England & Wales has sanctioned its capital reduction.
Earlier in July, 99.8% of shareholders voted for the capital reduction at the company's general meeting. It said the High Court sanctioned the cancellation of the amount standing to the credit of the company's share premium reserve and the capital redemption reserve.
By Greg Rosenvinge, Alliance News reporter
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