…By Gift BADEWO for TDPel Media.
A faction of shareholders in the renowned nanotechnology firm Nanoco has voiced concerns over what they term as “serious corporate governance issues.”
The group, which holds about 5% of the company’s stakes, is vehemently advocating for a complete overhaul of the company’s board.
Call for Leadership Change
The faction of investors is led by Tariq Hamoodi, and their primary goal is to unseat the top leadership, including CEO Brian Tenner, CFO Liam Gray, Chairman Christopher Richards, along with three additional board members.
They are adamant that their proposed move is a response to the board’s alleged bias in decision making.
Allegations Against The Board
The investors have levied serious accusations against the Nanoco board, renowned for manufacturing ultra-thin lights employed in screens.
They assert that the board is disproportionately favoring the company’s principal shareholder, Swiss bank Lombard Odier, and ex-major investor Richard Griffiths, at the expense of the collective shareholders’ interests.
Concerns Over a Legal Settlement
At the heart of this dispute lies a recent legal settlement with tech giant Samsung.
The investors argue that the board’s communication about the settlement led them to anticipate a significant windfall.
However, the actual settlement, which totalled $150 million (including $85 million from the sale of Nanoco’s intellectual property rights), fell short of their expectations, given the ensuing legal costs.
Impact on Share Value
Following the settlement disclosure, Nanoco shares listed on AIM experienced a dramatic drop of 23%.
This further fuelled the disgruntled shareholders’ resolve to challenge the current board.
Company’s Response
In response to the unfolding dispute, Chairman Christopher Richards has firmly rejected the allegations made by the shareholder group.
Richards confirmed that the company will evaluate the request for a meeting and make a decision in due time.
The company maintains that the proposed board changes are not in the best interest of Nanoco or its shareholders.
The chairman further argued that Hamoodi’s claims were rife with factual errors and speculative concerns.