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- Metalicity (MCT) will use its shareholding in takeover target Nex Metals (NME) to push for a “significant corporate governance reform”
- The company spoke of its intention to use its 32 per cent stake to vote against the re-election of current Nex Metals directors
- Metalicity says it has become “increasingly concerned” over the director related party transactions and the “lack of corporate governance” that leaves shareholders waiting for market sensitive information
- Metalicity has nominated Alex Neuling, Kevin O’Sullivan and Justin Barton for election as directors of Nex Metals
- Metalicity shares are up 14.3 per cent and trading at 0.8 cents, while Nex was down 2.70 per cent at 3.6 cents
Metalicity (MCT) has made it clear it is not happy with its takeover target Nex Metals’ (NME) leadership and says it will use its shareholding to push for a “significant corporate governance reform”.
The company says it will use its 32 per cent stake to vote against the re-election of any current Nex Metals director.
“Over the last number of years, Metalicity has become increasingly concerned over the director related party transactions of Nex Metals – in particular the level of liabilities incurred,” the company told the market.
Metalicity is also “alarmed” over the “lack of corporate governance” that leaves Nex shareholders waiting for market sensitive information.
Concerns include Nex’s failure to lodge its statutory 2021 annual report on time, which led to a suspension of trade from the ASX, failure to lodge a compliant targets statement and independent experts report and delayed lodgement of quarterly cashflow and activity statements.
The company is also not impressed with the lack of transparency relating to Nex’s Tailings Project, with no update since February 2021 when the project was in production.
On September 14 last year, Metalicity announced it would make an off-market all scrip takeover for all shares in Nex Metals, its joint venture partner in the Kookynie and Yundamindera gold projects in Western Australia.
Nex Metals announced the same day that the bid was unsolicited and shareholders should take no action in regards to the bid.
“The Australian Securities and Investment Commission (ASIC) have submitted that the reasons given by Nex Metals directors for recommending the rejection of the bid ‘are fundamentally unsound because they are not premised on the value of the offer’,” Metalicity said in a statement today.
Nex has failed to produce a target’s statement by the revised deadline of January 21 this year. Metalicity believes Nex’s directors are “personally liable” for the first $50,000 of costs associated with the production of an independent experts report currently being produced by Metalicity.
“Metalicity is concerned that today, over 100 days since it was first required, Nex shareholders still have no compliant target’s statement,” the company said.
“All these matters suggest an urgent need for corporate governance reform at Nex Metals.”
Due to its concerns, Metalicity has nominated Alex Neuling, Kevin O’Sullivan and Justin Barton for election as directors of Nex Metals. The company gave formal notice of these nominations to Nex on February 11, in line with the deadline.
Neither parties’ shareholders have any information on when the Nex annual general meeting will he held, with the revised date of 14 March not possible due to statutory notification timeframes.
On the market, Metalicity shares are up 14.3 per cent at 0.8 cents, while Nex was down 2.70 per cent at 3.6 cents at 3:57pm AEDT.
