Sandon Capital’s requisition for a general meeting to remove directors
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Sandon Capital saw an opportunity to halt the futile strategy of ploughing more cash into any further trials of the failed colorectal cancer drug. The continued strong cash flows from Fonda could then be returned to long suffering shareholders.
2nd quarter, 2015
~$0.053
Upon acquiring a substantial stake (>5%) in ACL, Sandon Capital commenced discussions with the directors about Board renewal. This saw the resignation of two directors, however, the remaining directors wanted to continue to implement the failing colorectal cancer drug development strategy.
In June 2015, Sandon Capital requisitioned a shareholder meeting to replace the Chairman and one other director. Soon after the general meeting was requisitioned, it was withdrawn after Sandon Capital succeeded in having the Chairman resign and Ken Poutakidis appointed as an independent director and interim Chairman.
Three months later, in September 2015, ACL announced it had entered into a binding term sheet for the sale of the worldwide exclusive intellectual property rights of Fonda for US$17.5m. Following the sale, ACL announced it would return the bulk of its cash to shareholders via a 9.3 cents per share capital return.
Sandon Capital had the bulk of its investment in ACL returned via the $0.093 per share capital return in February 2016. The remaining stub position was sold on market in February 2016.
Download Sandon Capital’s requisition for a general meeting to remove directors...
Source: The Australian Financial Review. By: Liam Walsh. THE founding scientist of Brisbane drug developer Alchemia is facing the threat of getting du...
Past performance is not indicative of future performance. The content of these case studies constitutes the views and opinions of Sandon Capital. They have been prepared without taking into account the objectives, financial situation or needs of any particular individual. The case studies do not constitute advice.
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