BTA 0.00% 57.0¢ biota holdings limited

khan needs to farooq off. see holders'

  1. 5,453 Posts.
    lightbulb Created with Sketch. 1
    note ..

    Following is taken from a note to shareholders by the Biota ahareholders' assoc , noting that the EGM on Friday is important, most particularly re Farooq Khan's campaign to be appointed a director of Biota.

    An article in monday's Australian Financial Review also raises concerns.

    This article sees a call for ASIC to investigate Mr Khan's statements to Biota shareholders (page 47). Further, a former Davnet executive is quoted: "...Khan tried to intimidate the DVT board by threatening personal legal action against directors, and he has since levelled similar claims against the Biota board. He claims to be someone who is a shareholders' champion and someone that can restore value into companies and someone who had great commercial experience. But history shows he is anything but that... .

    He actually destroys shareholder value and the annoying thing is that he doesn't offer an alternative plan...The companies he controls do not have any operations, revenues or any customers."

    On the other hand the current Biota board has several strengths including an understanding of the science, knowledge of biotechnology research and procedures, a strategy in place and resourced, and a balanced board of directors with international networks to expedite introductions to "Bigpharmas".

    Mr Khan's presence on the board could be disruptive , as he was hostile to the appointment of the two directors seeking re election last year.

    He is already a director or executive chairman of four companies, of which two are trading at considerable discount to the stated net asset backing, one is trading above and the other is suspended. He should perhaps focus on these situations before involvement with Biota.

    Mr Khan can say he wants and will pay for a review of the company, he currently does not have a plan, despite accumulating the 9.5% shareholding.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.