MOLOPO Energy has lost Europe-based director Alexandre **ovich after a general meeting called by 18.5% shareholder Keybridge Capital, which failed to replace him with their nominee William Johnson.
The company is already down one director after Wayne Trumble resigned in July, a day before Molopo acquired $8.75 million worth of shares in Floridian Orient which has acquired the right to participate in an oil and gas exploration play in the US state.
Keybridge says it has repeatedly asked for explanation of the purchase and how Molopo came to value Orient at $17.5 million to start with and it took its concerns to the Western Australian (now moved to Victoria's) to force a look at the books.
This comes just as WAM Capital, which has $1.265 billion in assets under management, made its own takeover offer of 13.5c per Molopo share, less than the 14c the junior currently sits on and the same as what Aurora Funds Management has been pursuing after dropping from 18c.
Molopo has been fighting the Aurora takeover and initially the Takeovers Panel rebuffed Aurora's move given it had not made clear its association with Keybridge.
The Takeovers Panel at the end of last month declined a Molopo request it investigate Aurora's bid to see if it was genuine or contravened the spirit of a previous offer of Order 9, which in July said neither Keybridge or Auroroa could directly or indirectly acquire more shares for six months.
That WAM offer came two days after Keybridge's Supreme Court legal proceedings were moved to Victoria.
Molopo has advised its shareholders to take no action on WAM's bid.
Keybridge called yesterday's meeting on October 4 to get its man onto the board and address what it has repeatedly called "serious concerns" over management, including $2.7 million of losses, the Orient acquisition, Molopo's silence, Trumble's resignation, Molopo's continued suspension from trading and a $1.77 million in salary and admin expenses despite the losses.
Keybridge said early last month that "in light of these matters Keybridge is not prepared to sit back and wait for Molopo's 2018 AGM to again consider the composition of the Molopo board."
One of the reasons it gave for its Johnson pick was that after Trumble's surprise resignation the company was in breach of Australian law by not having two board members resident in Australia.
The loss of **ovich in Europe puts Molopo no closer to fulfilling those board requitements and Energy News understands that Ronnen Rosengart remains as sole Australia-resident board member.
Molopo suspended trading in July.""
MPO Price at posting:
14.0¢ Sentiment: None Disclosure: Held
