By Tom Winnifrith, The Sheriff of AIM | Sunday 18 June 2017
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Earlier today I suggested that less than lovely Rita Whittingham ( remuneration $245,438 in 2015 and $303,737 in 2014) would almost certainly be ousted at the forthcoming GM - the maths look grim for her as I explained HERE. But if you were still wavering, did you know about her family on the payroll? Oh yes, this is shocking.
The key to unlocking this is the rift between co founder Steven Snead and less than lovely Rita. Snead quit the board on April 3 2017 after an acrimonious bust up with LTLR. The word from those close to the action is that the disagreements started during the downturn in the market when Snead felt the company needed to respond to the market conditions and make necessary cuts. An obvious employee to fire was Rita’s daughter, whom was getting a good salary and, it is claimed, doing very little. Rita fought with Snead to keep her daughter employed but in the end she was let go.
In the same RNS as Snead’s resignation is a congratulations to Derec Normanwho was appointed as the new CFO. The company website shows Derec as CFO and VP of Accounting. Remember this is a tiny company so can it afford and does it need a CFO? Almost certainly not.
So who is Derec? Knock me down with a feather he is Rita’s very own son-in-law. Once again, as mug punters forked out for ever more dilutive placings over the years with no payback at all, the real purpose of those placings becomes clear: maintaining not only LTLR but also her wider family in a manner they deem suitable.
Once again we urge all shareholders to vote to fire Rita Whittingham at the firthcoming Magnolia Petroleum (MAGP) GM. Better still contact the company and say how you will vote so pushing Rita to save cash and walk the plank with some grace ahead of a shameful GM sacking.
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