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- Dental company Smiles Inclusive (SIL) has welcomed the cancellation of a pivotal extraordinary general meeting, which was scheduled for October 23
- The EGM was called by dentists who previously worked under the company’s Totally Smiles banner, but are no longer employees
- This would have been the dentists’ third attempt to oust Smiles Inclusive’s leadership team and elect themselves to the board
- In other news, ASIC’s determination has barred the company from using a transaction-specific prospectus to raise capital until October 2021
- Smiles Inclusive remain suspended from trade, worth 3.5 cents per share
Dental company Smiles Inclusive (SIL) has welcomed the cancellation of a pivotal extraordinary general meeting, which was scheduled for October 23.
The shareholders’ meeting was called by a group of dentists who previously worked under the company’s Totally Smiles banner. These dentists have not been employees of the company since April 2020, when they terminated their facilities and services agreements.
The requisitioning shareholders called the EGM regarding their proposed resolution to remove all of Smiles Inclusive’s current directors. The resolution also proposed replacing the current directors with Dr John Camacho, Dr Philip Makepeace, and Dr Arthur Walsh.
These names include a number of dentists who left the company earlier this year, after accusing Smiles Inclusive of corporate toxicity and bad management. Dr John Camacho sent an email detailing these grievances to the company, on behalf of several other senior Smiles Inclusive dentists.
The company retaliated by casting aspersions on the truth of Dr Camacho’s claim to represent 15 other dentists. Dr Camacho and Dr Makepeace soon responded by confirming that all the listed employees intended to quit, as a result of Smiles Inclusive’s incompetence.
This latest EGM would have been the third time that Dr Camacho has attempted to oust the company’s current leadership team and get himself elected. Even if it had gone ahead, proxy forms received by the company thus far would have sufficiently defeated the proposed coup by the requisitioning shareholders.
In an announcement, Smiles Inclusive welcomed this decision by the requisitioning shareholders to cancel the EGM.
“The company welcomes the cancellation request, as it has always considered the EGM to be an unnecessary and costly distraction from the board and management’s efforts to turnaround the Smiles Inclusive business,” the announcement read.
“Smiles Inclusive has had to incur significant costs, both in time spent by management and the board, and in legal and other fees, to respond to the requisitioners’ repeated attempts to spill the board,” it continued.
In other news, Smiles Inclusive has received a determination from the Australian Securities and Investments Commission (ASIC). The determination has ruled that the company can not use a transaction-specific prospectus to raise capital until October 19, 2021.
The company will now take time to discern if this will have any effect on its anticipated capital raise, and provide an update in due course.
Smiles Inclusive remain suspended from trade, worth 3.5 cents per share.
