Below is from the CPSA and the attached PDF is from OptionCo
Dear CPSA Member
Attached is a letter from OptionCo making their case for the upcoming board spill General Meeting. In summary the points made are;
- The Macquarie Scheme being voted down is only the first step in effective company reform.
- Shareholders have lost trust in the current board who have wasted nearly $3m of shareholders money on the failed takeover.
- The current board has said openly they would "do it again" proving they are out of touch with shareholders.
- No problem if Richard Cottee leaves as there are suitable candidates within the company who can replace him as CEO.
- Refinancing Macquarie's debt is OptionCo's main priority. Allowing Macquarie to remain as both Senior Debt provider and Mereenie JV partner is considered unhealthy.
- A formal Capital Efficiency Review is required immediately to determine the amount and timing of capital with minimisation of shareholder dilution OptionCo's front of mind.
- OptionCo's proposed directors are committed and well qualified to drive the company forward.
My personal observation is that the current board appears unable to drive CTP to where it needs to go. The board's attitude towards shareholders has changed to be more protective of themselves rather than to increasing shareholder value. Like many shareholders, I have been a Cottee fan however, he appears preoccupied and has also lost his mojo and following in the investment community. I am amazed that the board has allowed Macquarie to dictate to the degree it has which indicates poor planning and/or choices in selecting advisors. Why haven't they been able to raise capital in the same market that other local oil & gas companies have managed to raise hundred's of millions of dollars and been oversubscribed? Our survey indicated several million dollars could be raised in a rights issue. I note the board is only now talking about that as an option and I'm sure will fire this out to us straight after the General Meeting if they manage to remain. Through the current board's insecurity and poor decision making CTP has lost valuable time and wasted a lot of money yet they act like nothing has changed. I find this simply arrogant and am very disappointed with the company's current leadership.
In my opinion the OptionCo nominated board is the only real alternative to the current board. OptionCo is made up of long standing CTP shareholders/CPSA members who are motivated to protect and enhance the wealth of ALL shareholders particularly those who have been in for the long haul and have a relatively high average cost per share.
I will personally be voting FOR the board changes. We will send out another survey shortly so we know what members are thinking.
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