Pure Profile chairman Andrew Edwards survives attempt to fire him from board
A truce has been declared in the battle for control of online research and digital advertising operation Pure Profile, with maverick shareholder Oceania Capital Partners granted a board seat and withdrawing its attempt to fire executive chairman Andrew Edwards.
In an update to the ASX this morning, Pure Profile also revealed that it has backed down on its attempt to withhold its final earnout payment to OCP for the purchase of lead generation agency Cohort Global.
Earlier this month Pure Profile had claimed that when it agreed to buy Cohort from OCP for more than $25m in September 2016, it had been misled about the company’s health. Meanwhile OCP had claimed that a final earnout payment of $1.4m was due.
The bitter battle saw OCP – which became a shareholder in Pure Profile as part of the Cohort deal – launch a public attack on the company’s stewardship under Edwards.
Edwards: Saw off OCP’s attempt to oust him
It warned that Pure Profile was “exposed and vulnerable” and claimed that a number of senior staff had left the organisation without their departures being announced to the market. It also warned that the company had been forced to take out a high interest debt facility in order to meet its obligations.
Today’s announcement says that the companies have signed a deed of settlement, and Pure Profile has paid $1m of the earnout. The statement said: “This brings to a conclusion all matters in relation to the Cohort acquisition.”
OCP has now cancelled its attempt to hold a vote by shareholders on firing Edwards from the board and replacing him with Cohort founder Marcelo Ulvert.
Pure Profile’s new CEO is Nic Jones, who took over from founder Paul Chan, who departed at the start of the year.
Jones: Has taken the helm of the troubled company
Pure Profile currently has a market capitalisation of $15m, close to the lowest point since it floated on the ASX in 2015 and less than a quarter of its peak.
Tim Burrowes founded Mumbrella in 2008. He worked on Mumbrella until 2021. At various points he was editor, content director and editor-at-large.
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Andrew is a good man and an excellent business person.
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It’s Pureprofile
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Compo day
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Good effort on lowering the stock price mate.
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This company is a mess with no clear roadmap for success articulated.
With their cash flow at dangerously low levels, it’s only a matter of time before creditors and suppliers break down the door and this company folds.
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Met Pure Profile with Paul Chan in charge, completely out of his league in a public company, and they’ve bought in the cleaners way too late. The old and new mess is all over their shoes and being tracked through the tired old carpet. Goodnight nurse.
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