Struggling Smiles Inclusive to raise capital to turn company around
Written on the 21 June 2019 by David Simmons
While the dust is settling over a prolonged leadership battle at the top of listed dental company Smiles Inclusive (ASX: SIL) the company is poised to raise $1.2 million.
Smiles says the funds will go towards the group's turnaround plan and meet its working capital requirements.
The offer price for the placement will be $0.14 per fully paid ordinary share in the company, with 8.6 million new shares being issued under the placement. Shares in Smiles closed at $0.12 per share on Thursday afternoon.
The $1.2 million raise comes just after the ousted founder of Smiles Inclusive, Mike Timoney, withdrew his attempt to hold a second vote over the makeup of the company's board.
Timoney and ex-chairman David Herlihy were voted off the board by shareholders at an extraordinary general meeting (EGM) held last month, but since then the former CEO has sought to discredit the voting process with allegations of tampering.
A bloc led by Timoney had also tried to install Clinical Advisory Committee head Dr John Camacho on the board, and remove chairman David Usasz and director Tracy Penn, but shareholders thought otherwise.
"The Company is now hopeful that all parties will accept the results of the first extraordinary general meeting and allow the board and management to focus on improving the Company's financial and operating performance, and restoring value for all shareholders," said Smiles Inclusive at the time.
Smiles Inclusive has also announced yesterday afternoon that it is engaging in cost reduction initiatives. Part of this includes bidding farewell to company secretary Jessica Watter.
Smiles Inclusive CFO Emma Corcoran will assume Watter's company secretary responsibilities.
Business News Australia
Author: David Simmons