17th Oct 2022 17:04
(Alliance News) - Reabold Resources PLC on Monday said it has received a letter from Pershing Nominees Ltd, which holds a 6.9% stake in the company, calling for a general meeting to remove its entire board of directors.
Reabold is an oil and gas company with projects in the UK, the US and Romania. Its shares closed down 7.7% to 0.25 pence each in London on Monday afternoon.
According to Reabold, Pershing has called for the removal of its entire board of directors, with the board to be replaced by four new directors of their own choosing.
Reabold said: "The board of Reabold believes the motive of the requisitioning party is to opportunistically gain control of your company and its significant cash and assets, without paying a control premium.
"The board notes that a number of the proposed new directors have a track record of exceptional value destruction in quoted oil and gas and resource companies," it added.
Reabold explained that legal advice it has received noted "several deficiencies" with the letter, and that the request is not valid under section 303 of the Companies Act 2006.
Based on this, Reabold said it has written to Pershing detailing the actions it needs to take to validly call a meeting and has invited Pershing to procure a valid request.
"If and when the company receives a valid requisition notice from Pershing, the board will respond to it in accordance with the act and will share its views on the proposals with shareholders," it added.
By Sophie Rose; [email protected]
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