Rebel shareholders in CustomVis have requisitioned an EGM to vote two directors off the board and replace them with three of their nominees.
Former directors of the eye laser surgery equipment development who have the backing of around 13% of the share capital are trying to unseat the board. They want to remove chief executive Paul van Saarloos and Simon Carroll. Shareholders will be asked to vote Simon Gordon, Hugh Grant and Christopher Bell to the board. The first two were managing director and finance director of the business when it floated. Former nominated adviser Collins Stewart recommended the men for their posts.
The proposed directors were part of the team when most of the share price fall happened. It has been a slow process but CustomVis appears to be on the right track and this has happened since the Gordon and Grant left the board. They are based in the UK whereas CustomVis is effectively an Australian business. Costs have been cut in recent years but electing the proposed directors could increase them again.
There does not appear to be any real reason given why the requisitionists would do a better job. They have a website called www.rescuecv.com but there is very little in the way of constructive information on there. What they do plan to do is to gather more clinical evidence which end up using more cash. The company is unlikely to have that cash and it will have to be raised elsewhere.
Bob Morton has 22% of CustomVis and he is backing the existing board. That means that along with the directors own holdings and the shareholdings of their friends the board has the backing of around 30% of the shares.
Sales of equipment are being made but the company has to be careful with its cash. The costs of the EGM will not help.
At 1.675p a share, CustomVis is valued at £2.84m.
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