No Images? Click here 24 April 2019 Smiles Inclusive Limited Takes Founder Mike Timoney to CourtPress Reports in the Australian Financial Review of the 23rd April 2019 and in Business News Australia of the 17th April 2019 have reported that Smiles Inclusive Limited has initiated legal action against beleaguered founder Mike Timoney alleging serious misconduct and breaches of the law. It is alleged that $78,878 of company funds were paid to Mr Timoney of which he was not entitled to. Naturally, he denies that the payments were improper. Meanwhile, former Chairman David Herlihy and ex-CEO Mike Timoney petitioned an Extraordinary General Meeting of the Company as have their opposition, new Chairman David Usasz and Director Tracy Penn, with each side trying to have the other voted down. The various legal moves for the Extraordinary General Meeting are ironic given the company’s slogan “Together We Smile”. Peter Evans, the only Director not aligned with either of the factions has formed an independent committee of one to provide proper governance procedures for the EGM. Mr Evans was formerly with Morgans Stockbrokers who picked up $1.75 million for underwriting the float of Smiles Inclusive Limited last year. The issue price was $1.00 and it is now trading at a measly 16.5 cents. According to the Australian Financial Review Morgan’s has been under the pump for its involvement with other wealth destroying entities such as Blue Sky Alternative Investments. Elsewhere, as we recently reported, Abano recently announced to its New Zealand audience that it had stopped buying dental practices in Australia because they were not earnings accretive. Abano had purchased Dental Partners Limited several years ago being a company also associated with Mike Timoney. Many of its practices were re-badged as Maven. Mike Timoney had tried to get up an earlier version of Dental Partners which had a different ABN. When it was realized that some of its promotional material raised significant questions, it was quietly shelved after a couple of prominent dentists resigned from its Board.. More recently Mike Timoney’s judgement was called in to question over the disastrous acquisition of a mobile dental facility which had gotten into legal trouble for taking x-rays of school children’s mouths without a radiation licence. This contributed to Smiles Inclusives profit downgrade and his departure from the Chief Executive Officer role. The fast moving days of corporates buying dental practices have slowed to a trickle and the troubles of Abano/Maven and Smiles Inclusive will be sending a warning signal to any investors thinking of purchasing into another Dental IPO. Meanwhile, the Extraordinary General Meeting of Smiles Inclusive Limited is scheduled for the 26th May 2019. It is shaping up as the dental corporate equivalent of the “Battle of the OK Corral”, the famous event of Tombstone City where the Earps and Doc Holliday (a Dentist) were the victors in a gun battle with the Clantons and McLaurys. Australian litigation laws being what they are, participants in Smiles Inclusive’s EGM are more likely to be armed with lawyers than guns. What could we possibly do on an otherwise dull news day for Dentists without Smiles Inclusive? Best wishes to all Dentists, GRAHAM MIDDLETON Disclaimer: The information contained herein is of a general nature and no specific action should be taken without individual advice. Speak with Synstrat staff as appropriate. Prepared by Synstrat Management Pty Ltd for clients of the Synstrat Group. Synstrat Management Pty Ltd is the holder of Australian Financial Services Licence No. 227169. ABN 57 006 295 325 The Synstrat Group provides Accounting, Financial Services, Business Advice, and Financial Advice. Prepared by Synstrat Management Pty Ltd for clients of Synstrat Group. Synstrat Management Pty Ltd P. 03 9843 7777 ABN 57 006 295 325 If you are not the intended recipient of this communication please delete and destroy all copies of this message and telephone Synstrat on +61 3 9843 7777 immediately. If you are the intended recipient of this communication you should not copy, disclose or distribute this communication without the authority of Synstrat. Any views expressed in this communication are those of the individual sender, except wh ere the sender specifically states them to be the views of Synstrat. If you do not wish to receive this email in future, please reply to the sender requesting termination of service. |