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Frank Wilson Resignation, page-8

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Mic91

3 Posts.

11/01/18

17:25

Post #: 30234746
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Originally posted by 2018_Change ↑

Please see below.

Why did he stand down?

He stood down because he was approached by a private equity firm to make a bid for Quintis at a premium to the share price at that time which was well in excess of $1.00. The company at the time was being besieged by short sellers who even prior to Glaucus were damaging the share price for their personal financial gain. He felt the best way to defeat the short sellers and to provide a very good outcome to shareholders was for a bid to be made for the company. His legal advice was that if he was going to be involved in a bid for the company he must stand down as CEO, which he did. What he did not bank on was the level of incompetence of the board and management in his absence. He even offered to help the board as a consultant to ensure they could achieve important plantation sales and end market sales but the board rejected this offer. The arrogance and naivety of the board to reject his assistance ultimately led to the company achieving zero plantation sales in the June quarter for the first time in 20 years. Unfortunately, the party who had approached Mr Wilson to make a bid ultimately withdrew without making a bid due to the rapidly deteriorating position of the company after Mr Wilson stood down, and also due to the fact that the company actively discouraged this party from dealing with Mr Wilson. Again a naïve and stupid move given that all shareholders would have benefited from a bid being made by this party in conjunction with Mr Wilson.

Why hasn't he yet made a bid?

Shortly after Mr Wilson stood down the position of the company began to deteriorate with the company inexplicably withdrawing its plantation sales PDS and taking other measures that sent negative signals to potential investors and customers. This deterioration spooked prospective takeover parties working with Mr Wilson.

The panicked and poorly worded ASX release in reaction to the alleged Galderma termination which wrongly made investors think the company had lost a major contract that was material to its earnings, and very clearly implied falsely that Mr Wilson knew of the alleged termination and did not advise the board. This announcement again spooked potential takeover parties who were working with Mr Wilson. Mr Wilson is now suing the directors for defamation in relation to their ASX releases in relation to the alleged Galderma termination.

The board has made it known to prospective takeover parties that they would not deal with them if Mr Wilson was involved in the takeover. Making it extremely difficult for Mr Wilson to work with other parties to mount a takeover for the Company was again arrogant and naïve, and has backfired on all shareholders.

Despite the above actions, there is now significant support for the financing of the Company on the back of the election of the new board and progress Frank Wilson and his network have made in relation to new end market customers. The new capital is prepared to invest because of the changes we are proposing and this new capital would not entertain investing into the company with the current board and management.

One would question whether the proposed new directors who are all successful in their own right would join a public company board in this situation if a proposal or potential proposal wasn't legitimate and weren't confident that this situation can be turned around, and quickly. This turnaround will be achieved by kickstarting new sales with new customers and we are well organised to execute this.

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In that case I hope there is a better alternative, which after 10 months of no progress looks doubtful.

Everything I have seen to date from the current board suggests that they are the ones trying to absolve themselves of responsibility. Frank Wilson was one of 6 Directors, yet only his mess?
QIN Price at posting: 29.5¢ Sentiment: None Disclosure: Held
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