Pure Profile claims it was misled over its $25m+ acquisition of digital agency Cohort
The management of online research platform and digital advertising company Pure Profile has hit back at attempts by rebel shareholders to oust the company chairman, suggesting the organisation was misled when it bought digital agency Cohort.
The announcement to the ASX comes three days after shareholder Oceania Capital Partners called for the sacking from the board of executive chairman Andrew Edwards based on the company’s declining share price and commercial struggles.
Today, Edwards’ team refuted the claims in a new statement to the ASX.
Edwards: Fighting to retain board position
Its “Pureprofile”
You can’t buy something and blame it all on what you bought
You bought it
What does that say?
I’ve no idea or interest in pureprofile or this issue.
But any CEO who says don’t blame me I was mislead should be questioned for two reasons
1. No insight to realize that if they were mislead it reflects worse on them
Not the agency misleading as DD wasn’t fine properly.
2. It’s such a silly and defensive thing to say.
That’s my 2 cents.
Disclosed in HY report if you can read that.
Hi BB,
Hi BB,
Thanks for that. I can find a single line in the 4D report saying “the company is currently involved in a legal claim with the previous owners of Cohort.” No further information, but perhaps that’s what they’re relying on.
Cheers,
Tim – Mumbrella
Is reported as a contingent asset on the balance sheet which suggests they think there may be some merit to the claims and something fishy about the vend though who am I to speculate
Hi BB,
I do think you’re correct. Along with the warranty breaches which they now publicly allege, it certainly seems to be going in that direction.
Cheers,
Tim – Mumbrella
Hey Tim and BB (good pickup in the HY, buried right at the back…),
there is also a directions hearing listed in the NSW Supreme Court involving PPL for March 19th – just guessing but would think it’s about this…
http://bit.ly/2IidGSx
I would think if I was OCP/Cohort there would be a concern that PPL are going to run out of cash…they are fully drawn on their debt facility and the new auditors qualified their opinion as to whether it was a going concern…
Cohort was and is a good (ish) business, but it was a massive over-pay given it was cash, but not the 1st or last time someone will do that.
Lawyers will be the winners, yet again.
How can a business that operates on Insertion Orders forecast the so far into the future? Agencies don’t even have that future outlook. As a leads generation business Cohort has made a fortune from the market [Edited under Mumbrella’s comment moderation policy]