Iofina Says Investor Banks Does Not Intend To Make Acquisition Offer

(Alliance News) - Iodine and specialty chemicals maker Iofina PLC on Thursday said that ...

Alliance News 12 March, 2020 | 2:29PM
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(Alliance News) - Iodine and specialty chemicals maker Iofina PLC on Thursday said that 14%-shareholder Arron Banks does not intend to make an offer for the company.

Shares in Iofina were down 9.8% at 17.52 pence each in London.

Following a request of clarification, Banks has informed that he does not intend to make an offer for the company, Iofina said.

"Mr Banks, and an associate of his, had made a number of statements through the media indicating that he was actively considering a possible offer for the entire issued and to be issued share capital of Iofina. Until today, the company had not received any communications regarding the possible offer from Mr Banks," the company noted in a short statement.

Banks was one of the founder of the Leave.EU campaign in the UK and poured significant funding into the UK Independence Party.

Iofina on Tuesday slammed an attempt by Banks to remove its non-executive chair.

Rene Nominees IOM Ltd A/C POOLED, on behalf of South Rock Insurance Co Ltd and ICS Risk Solutions Ltd, on Monday called for a meeting of shareholders to vote to remove Iofina Non-Executive Chair Lance Baller and appoint Banks to the board.

London-headquartered Iofina on Tuesday had said the requisition of the meeting was a reaction to Iofina's decision to not invest into a hemp project in Belize with which Banks is associated.

Banks has accused the company of "badly executed" expansions of iodine plants with high costs, which Iofina said is incorrect. He also criticised Iofina's debt reduction plans to which the company had said it is in talks with several possible debt providers to restructure its debt.

Another criticism levelled by Banks referred to Iofina's investment into Colorado-based hemp seed producer Organic Vines, as part of a plan to move into the hemp products market. Iofina on Tuesday responded that the investment could deliver the maximum return achievable and also had said Banks was publicly supportive of the investment at the time.

By Tapan Panchal; tapanpanchal@alliancenews.com

Copyright 2020 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Iofina PLC 16.15 GBX 0.62 -

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