Nuix’s ex-insiders about to get the ‘loot’
https://tinyurl.com/9jk6hwyuNuix’s interlocking scandals have forced out both its CEO and CFO, but there’s one silver lining for them – they’ll soon be able to cash out and walk away. On Monday, outgoing CEO Rod Vawdrey and sacked CFO Stephen Doyle (the latter is being investigated for insider trading) are scheduled to come into full ownership of their Nuix shares. Their escrow expires just as soon as the company releases its 1H21 result.
Nuix’s cratering means their stakes are shadows of their former selves. Vawdrey’s was worth $4.3 million on Thursday, down 68.6 per cent since the IPO, while Doyle’s was worth $2.3 million. If they were still employed by Nuix, selling the moment they were allowed to would have been the epitome of poor form. But hey, Doyle doesn’t owe shareholders anything, and soon Vawdrey won’t, either!
If both are out the door when they sell, neither will even have to file notice of their dumping stock. And being unemployed, we wouldn’t expect them to do anything less.
Macquarie, as a significant shareholder, will have to inform shareholders should it reduce its exposure. Its 30.1 per cent stake, worth $263 million, will be similarly tradeable, just as soon as the result lands. Also coming into unencumbered scrip is ex-Nuix chairman Tony Castangna, who is under investigation by the Australian Federal Police. His remaining 4.2 per cent stake in the company was worth $36.7 million on Thursday.
The fact that over a third of the register is about to come out of escrow and into the control of some of those most responsible for Nuix’s present mess might strike shareholders and citizens as ... well, unjust.
In Parliament, Labor senator Deborah O’Neill has called on corporate regulator ASIC to freeze the share transfers urgently.“ASIC must be proactive and act to protect investors and not let those with serious questions to answer to walk away from this scandal with the loot.”We couldn’t have said it better ourselves.
(20min delay)