Today's Financial Review (AFR), Page 11,Well-respected Reporter, Nabila Ahmed wrote,
"A militant shareholders group led by Vic biotechnology veteran Bob Moses will press ahewd with a meeting designed to spill almost the entire board of Brisbane-based Progen Pharmaceuticals this week, little more than a fortnight after the biotech company annouced a friendly merger with Avexa.
Mr. Moses, a former vice-president of industry giant CSL, said the proposed deal was "seriously flawed" and disadvantage Progen shareholders.............
Mr. Moses said the Progen directors had a long record of failure to deliver on their promises...
The Progen Shareholder Group (PSG) plans to revive the company and wants fellow shareholders to replace all but one director with its representatives...
The group has give Progen shareholders three options to vote in the new directors, shareholders can (1) choose a cash payout of $1.10 a share in return for cancellation of theirshares, (2) to retain theri shares in the "rebirthed" company led by Mr. Moses, or (3) to opt for a combination of a payout of a portion of their holdings at $1.10 a share and retention of the reminder as shares in the new Progen....
He siad nearly all of the substantive terms of the merger agreement favoured Avexa shareholders and at least one clasue specifically disadvantaged Progen shareholders by effectively denying the company a right to appoint its own expert to asses the risks and merits of the merger for the Progen shareholders.
IMO, Progen shareholders could have a chance, maybe the last one, to replace the current incapable board with the PSG led by Mr Moses this Friday (9th Jan) at Progen's EGM, just give you an opoorunity to overturn your company and your belief and of course you wealth as the shareholders of the Progen.
PGL Price at posting:
77.0¢ Sentiment: None Disclosure: Held
