MEDIA RELEASE: Bartercard Director Insider Trading
DATE ISSUED: 25 August 2017
MEDIA CONTACT: Dennis A. Smith
Directors of BPS Technology (ASX:BPS, owner of the Bartercard currency) have been accused of insider trading and an attempt to remove all directors has been established by minor shareholders.
The move to evict the entire board is revealed in documents filed with the Australian Stock Exchange this week.
The five current directors are targeted for outright removal by Alceon and LHC Capital and a large percentage of corporate shareholders, due to the Director’s “failure to engage co-operatively”, increasing debt and minimal cashflow generation. “Board composition and corporate governance practices” are also called into question in a move investigative blogger Dennis A. Smith calls extraordinary vindication of his long-term negative commentary on BPS Technology claims.
“It’s a brave move what these shareholders have done.” he says. “This appears to be much more than a one-off event and is more akin to the shareholders waking up to the systemic troubles that I have highlighted since before their dodgy IPO three years ago.”
Mr Smith says that claims of insider trading by the Directors, increasing debt and minimal cashflow generation are absolutely in keeping with his call that BPS was a last-ditch mechanism established primarily for the benefit of the Directors.
“By all metrics Bartercard has been in decline for the last decade and I see this recent attempt to remove the rot at the top of a troubled company is yet another nail in the Bartercard coffin.”
“I suspect that this latest move would be related to shareholders’ frustration that these ‘Smiles-in-Suits’ reneged on a deal to appoint a new CEO, who I am certain would have found a few nasty snakes under the hood,” Smith said.
Directors targeted for removal are: Trevor Dietz, Tony Wiese, Brian Hall, Murray D’Almeida & Garth Barrett.
BPS CEO, Trevor Dietz reportedly refused to comment about concerns relating to corporate governance.
ASX Document (Notice of Intention to Call a Meeting Pursuant to Section 249F of the Corporations Act): http://www.asx.com.au/asxpdf/20170817/pdf/43lh7x3zxw0fsy.pdf