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Updating earlier this month on Obtala Resources (OBT) with the shares then at 6.375p, we noted the valuation looked to fail to reflect the asset backing and likely news flow but a disappointing share price performance from a now long-running recommendation. It is now boardroom change ahoy.
This is with Frank Scolaro retiring from the Chairman's role (though remaining on the board as a non-executive) and Emma Priestley - who we always thought was dead wood - departing from the board, with Miles Pelham becoming Chairman.
Pelham joined Obtala as a non-executive director in August, with experience in senior investment banking positions within multinational financial institutions and with Scolaro now adding that he has already enriched the company via his network of investors and business contacts within Asia and beyond.
Pelham will work with Managing Director Simon Rollason and states “I can assure shareholders that I will maintain a simple business model of monetizing our assets and sunk investment whilst keeping clinical control of costs amidst strong corporate governance. I look forward to updating shareholders in the imminent future of our medium-term plans and meeting many of them in person at the UK Investor Show being held at the QEII Conference centre in London on the Saturday 30th of April".
This is a reassuring approach and the noting also that “the company sits at the cusp of healthy revenue expansion from its considerable asset base”chimes with our rationale for maintaining faith here.
The shares have responded 16% higher to 7.25p on the back of the news, but this is hopefully just the start of fresh positive momentum here. Our stance remains buy – and, as Pelham reminds, to further understand why the company can be seen at UK Investor Show this coming Saturday. Tom W is also planning a private meet with Pelham and will report back afterwards.
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