From merchant funds website, copy below FYI.
MAJOR 1-PAGE SHAREHOLDER SAYS IT’S TIME TO TURN THE PAGE
Perth, 15 December 2016: Merchant Funds Management Pty Ltd (MFM) has advised 1-Page Limited (1-Page or the Company) of its intention to arrange a general meeting of shareholders to be held under section 249F of the Corporations Act, at which shareholders will have the opportunity to vote on a proposal to reconstitute the 1-Page Board.
MFM – the manager of the Merchant Opportunities Fund, which owns more than six per cent of 1- Page – approached the 1-Page Board with a proposal for the orderly disposal of the current business and better utilise the Company’s cash on new investment opportunities with more immediate prospects for shareholder returns. However, given the lack of progress made with the incumbent Board on progressing such a proposal, Merchant has elected to hold a shareholder meeting to seek to advance its proposal.
MFM Managing Director Andrew Chapman said it makes sense to invest the Company’s cash in new opportunities rather than fund the existing 1-Page business which has yet to deliver returns to shareholders.
“A lot of money has been poured into 1-Page’s talent acquisition business for more than two years now but we are still yet to see the results,” Mr Chapman said.
“You need to look no further than the Company’s share price performance this year to know that the stock market has rejected the 1-Page business idea.
“We believe it’s now time to invest the Company’s funds in new business opportunities. It’s not about distributing the cash to shareholders – we want to see those funds invested into business opportunities that will generate near-term profits and value for shareholders.
“The Company could easily move in this new direction in an orderly way but the incumbent Board has not been responsive to our approaches. We have given them every opportunity to consider our proposal. As such, we’ve had no choice but to advise the Board of our intention to call a shareholder meeting to seek to refresh the 1-Page Board.
“We are not looking to control the Board – we simply want to see directors in place that will take the company in a new direction with an improved likelihood of a return for shareholders. There is a significant cash balance remaining in 1-Page and we do not want to stand by and see it whittled away.”
Under the Corporations Act, the general meeting of shareholders can be held no earlier than circa mid-February 2017. MFM will prepare a Notice of Meeting (NoM) that will detail its proposal and provide shareholders with a background on its nominee directors. The NoM will be distributed to 1- Page shareholders approximately one month ahead of the shareholder meeting.
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