Since the mining company Element changed its name from Intex Resources and announced its commitment to cryptocurrency last fall, it has been stormed around the company. This autumn the storm has reached a climax.
- The company does not have an accountant.
- The CFO has withdrawn.
- The plans for crypto-currency have been shaken up to now.
- The price of the share was interrupted by the loan agreement with the "Alpha Blue Ocean Death Spiral Fund".
- Chairman Lars Christian Beitnes has received a large personal process in his lap.
Wednesday Element wrote that Lars Christian Beitnes resigns as chairman.
"The reason for making my space available is to help restore and restore confidence in the company, and now shareholders are given full flexibility and can come up with a solution for the ongoing processes." I have great faith in Element, on the projects of the company, and look forward to contributing to the company as an advisor, says Beitnes at DN.
The second-largest shareholder of Elements, Rikard Storvestre, said in November that Beitnes should immediately disappear after it became known that he had received a major lawsuit from the Swedish authorities that would hold him responsible for Swedish retirees who lost more than NOK 100 million would be accused.
Beitnes thinks he has nothing to do with the case.
The message from Element states that Beitnes will remain as a consultant in the company.
The 2017 annual report states that Beitnes has a consultancy contract with Element, via the company Global Vision Limited, where he assists with administrative services and advisory services.
The price for Beitnes's advice was NOK 70,000 per month.
1.2 million per year
The report for the third quarter shows that the agreement was extended this summer until June 30, 2019. At the same time, the recommended price increased to NOK 100,000 per month, or NOK 1.2 million per year. The market value of Element is close to NOK 111 million.
Since the "payoff" to Beitnes, the shareholders have been given strong influence. The rate has dropped by 72 percent.
It has not affected Beitnes to a large extent. He himself has 212,578 shares in the company worth $ 180,000, equivalent to two months of consulting.
Last year Beitnes received a cost of 36,000 dollars (about 300,000 crowns).
Element also has a similar agreement with board member Frode Aschim through the company Ether Capital Ltd. This agreement also expires next June, but has a price of NOK 120,000 per month.
«Unreasonably low rates»
The minutes of the General Assembly in June, when consultancy agreements were approved, state that the financial position of the company in 2016 was very difficult and that the work that had been done since then was mainly carried out by the board and a very limited organization. In this period Beitnes and Aschim had consultancy agreements.
"However, with the activity the company has had, the rates are unreasonably low in relation to the efforts made", is stated in the minutes.
According to the company, both Beitnes and Aschim use between 50 and 70 percent of their capacity at the work they do for Element. In the long run, the company wants to build a more regular organization, but it will take time, so both the board and the CEO Cecilie Grue asked the shareholders to approve new consultancy agreements for the two heads.
I can not find an accountant
CEO Cecilie Grue told DN on Wednesday that the nomination committee has started to find a new chairman and that the company will return when a new general meeting will be held.
"That date has not been decided yet," she said.
An extraordinary general meeting will be held on Friday, August 14th.
This was postponed because the company has not yet succeeded in setting up a new auditor. EY did not want to extend its involvement with Element because of challenges in the collaboration. Element wanted to hire PwC as a new accountant, but PwC quickly set up its candidacy.
"It is not self-evident to comment openly on the dialogue we have with accountants, and to point out that the process continues, Cecilie Grue wrote in an e-mail to DN Tuesday.
Shortly after the general meeting was postponed, Oslo Børs placed the shares under special attention to Element.
In the past three months, the Element share has dropped by 63 percent.
Disagree with the support
Lars Christian Beitnes said Element's announcement on Wednesday that he almost had the trust of all shareholders.
"We are in the process of choosing a new accountant for Element, and I have had constructive discussions with the nomination committee and the largest shareholders, almost everyone of whom fully supports me as chairman," he said.
This is in conflict with the perception of the second largest shareholder of the company, Rikard Storvestre.
"My appeal is that he will leave immediately and he will of course be thrown at the next general meeting if he does not." He will not survive as chairman after that. "There are no shareholders who chair the chairman," said Storvestre in November to DN.
– Have you spoken to the other shareholders?
"I know some of them and I do not know if anyone supports him," Storvestre said.(Requirements)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our business with a link that leads directly to our pages. Copying or any other use of all or part of the content may only take place with written permission or as permitted by law. See here for further conditions.