LONDON (Alliance News) - Sefton Resources Inc on Thursday confirmed it has received a requisition from a group of shareholders including former Interim Chairman Daniel Levi for an extraordinary general meeting to remove some directors of the company, and said that its nominated adviser Allenby Capital Ltd has said it will resign with immediate effect if this resolution is passed.
The requisition calls for the removal of Chief Financial Officer Raylene Whitford and non-executive directors Tom Milne and Keith Morris, and the appointment of Clement Chambers as interim chief executive officer and Michael Hodges as a non-executive director of the company. Chambers and Hodges are co-founders and CEO and executive chairman, respectively, of financial information website ADVFN PLC.
Levi, formerly known as David John Hopkins, left the company in April, and after his departure an article in The Times newspaper detailed Hopkins' criminal record as a convicted armed robber. Sefton denied it had any prior knowledge of his criminal record, and said that by not disclosing his previous name, Levi had breached the rules of AIM.
Levi has made the requisition alongside Christopher Williams and Charnjit Matharu, who collectively hold an 11.29% interest in the company. Sefton noted that Williams was subject to a ruling by the panel of takeovers and mergers in May in relation to his activity in the shares of New World Oil and Gas PLC.
Shares in New World Oil and Gas were suspended in May following issues that arose after the company conducted a placing and open offer that led to confusion over the company's shareholding when it said that Judith Williams, a new investor, had purchased over 342.3 million shares in the company. It was reported by the Mail Online that the share purchase had actually been made by her son Christopher Williams, who thought he was only purchasing a 10% stake in the company before realising that his mother may be required to launch a full offer for the company.
The board of Sefton Resources said it believes that shareholders best interests are best served by the continuance of its current strategy, and that it does not believe shareholders would be best served by supporting the proposed resolution.
Sefton has appointed Non-Executive Director Jossy Rachmantio as executive chairman in order to continue finalise due diligence work relating to an anticipated acquisition of potential hydrocarbon assets in Indonesia. Alongside Allenby, Rachmantio also has informed the board he will resign with immediate effect should the extraordinary general meeting resolution be passed.
The company said it has also identified several new non-executive directors which it believes would be "a valuable addition" to provide assistance with its new 'South East Asian strategy', but these individuals have said they will not be prepared to join the company if the resolution is passed.
Sefton also is embroiled in a legal battle with its former executive chairman, which it has said is trying "force the company into bankruptcy proceedings". The company's former executive chairman, Jim Ellerton, initiated legal proceedings against the company in May and in July filed documentation to the US Bankruptcy Court for the District of Colorado. This hearing is set for the start of October.
"It truly has been a difficult time for shareholders, and I believe that all Sefton investors should have the opportunity to finally realise real value from their company following the events of the last few years," said Chief Financial Officer Raylene Whitford in a statement.
"Our evolving management team have clearly demonstrated our commitment to delivering real value despite the various legacy issues facing the company. We have a clearly articulated strategy to build a real production portfolio in a region that, due to its domestic energy demands, commands lucrative price premiums and is partially decoupled from global commodities prices," Whitford said.
"I call on all Sefton shareholders to support our new chairman and the current board as we build a credible oil and gas company with real production revenues and sustainable margins, whilst at the same time protecting shareholders' interests through a clear focus on corporate governance and the creation and retention of shareholder value," Whitford added.
Shares in Sefton Resources were down 12% at 0.0571 pence Thursday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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