Iofina blasts “self-serving” Arron Banks for coup attempt
The board of iodine producer Iofina has hit back at a “self-serving” bid for Arron Banks to join its board.
The board is urging shareholders to vote against the Brexit campaigner’s attempts to oust chairman Lance Baller.
In a stock exchange statement, the iodine producer’s directors claimed that Banks, who is a major shareholder, had been supportive until it decided not to invest in a hemp project in Belize.
They claim that the project had been pushed by Arron Banks and his business associate Andy Wigmore, who stood to “personally gain” from the project.
“The board suspects that this is the real reason behind the requisition requests. Messrs Banks and Wigmore were seeking to use Iofina as a vehicle to conduct related party transactions solely for their own benefit.”
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The co-founder of the Vote Leave campaign requisitioned a general meeting late on Monday.
The directors claim that after the decision to shelve the project on 21 February, the board “began to receive messages from [Arron Banks] threatening to requisition a meeting calling for their removal.” Iofina had decided not to go ahead because of concerns over regulation.
“We believe that the requisition is a reaction to the board saying ‘no’ to Banks, and putting the interests of Iofina and all of its shareholders as a whole ahead of his narrow views”, Iofina said.
Wigmore denied the firm’s claims on Twitter: “Quite a rant from @iofinaplc completely misunderstanding the reasons for the EGM, it had F-al to do with Belize – I suspect #ArronBanks now seriously considering a full bid for the company.”
The board added that Arron Banks had no relevant experience to become a director, having spent most of his career in the industry.
“Iofina does not view his appointment as beneficial to the company, but would more likely would negatively impact the strategy and undo the significant progress that has been made over recent years.”
Shares in Aim-listed Iofina closed up 2.09 per cent.
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