The Nanoco Group PLC (LON: NANO) share price barely moved after the company announced that it had received a letter of support from Glass Lewis regarding the upcoming general meeting of shareholders requisitioned by Tariq Hamoodi.
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The letter from Glass Lewis recommends that shareholders vote AGAINST all the resolutions to remove the current Board of Nanoco and vote AGAINST the proposed appointment of the following director nominees: Tariq Hamoodi, Greg Moeller, Dooyong Lee, Benjamin Barnett and Ikchoon Tim Kang.
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The nanomaterials manufacturing company noted that the directors recommended by Tariq Harmoodi did not meet the minimum threshold to serve on the company’s board since none of them had ever been directors of a publicly-listed company on the London Stock Exchange.
The board reiterated its belief that the changes proposed by the meeting requisitionists were not in the company's and its shareholders' best interests. Furthermore, the board changes proposed would result in a complete change of control at Nanoco without a takeover premium being paid.
Nanoco also noted that the requisitionists had yet to present a clear strategy for running the company once they took over. Additionally, the company is at an exciting inflection point where the settlement from Samsung is being used to transition from an R&D first mover to a leading producer of next-generation QD materials.
The change of leadership proposed by Tariq Harmoodi would lead to an exit of crucial talent from the firm, including Dr Nigel Pickett, the Group's co-founder and Chief Technology Officer (CTO). The company also referred to Mr Hamoodi’s allegations as unfounded.
The firm noted that Mr Hamoodi’s allegations were false and were meant to mislead its shareholders. The demands of the requisitionists would destroy the significant potential value of Nanoco’s organic business. The demands risk turning the company into a highly speculative litigation shell.
Nanoco’s board urged its shareholders to vote against the proposals and submit their proxy votes by 10 August 2023 before the general meeting scheduled for 14 August 2023. Investors will look forward to Monday's general meeting’s outcome next week.
Nanoco share price.
The Nanoco share price was trading muted for the day despite the Glass Lwewis letter of support for the board.
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