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Richard Jennings - call on Mayan shareholders to sack Charlie Wood at Thursday GM - part 1

By Tom Winnifrith | Tuesday 9 October 2018


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.


I gather that the new interim CEO Charlie Wood may not survive the Mayan (MYN) GM vote on Thursday. It looks tight and anyone reading the incendiary note by Zac Phillips earlier today is unlike to be shouting Je Suis Charlie. Now Richard Jennings of Align Research has weighed in with a no holds barred letter to shareholders calling on them to oust Wood. As they say...more to follow but the Jennings letter is below:

Dear Shareholder

We relay that we have offered Charlie Wood a graceful exit opportunity from Mayan this last few days. We are 100% certain that our offer is in the interests of ALL shareholders. It proposes a refreshed and capable new leadership team shorn of conflicts and the bitter legacy of the past and with a renewed focus on sweating our assets with effective governance and transparency and finally breaking the perpetual cycle that has bedevilled this company of promises, placing, broken promises, management enrichment, placing again…

ALL shareholders now have a choice – remain with the status quo of a woeful Chairman now “interim” CEO whom has enriched himself through the story of production at Mayan within 12 months of 500 bopd and that has been revealed to be nothing like that, indeed using the majority of the monies raised for this purpose, and seemingly Mayan’s future prospects, to create the Deloro vehicle and to then take, via Deloro, a personal stake of near 1m shares in Petroteq currently worth circa $1m on paper. This same chap has refused to put a single cent into Mayan during this period to date and has, incredibly, also drawn/accrued a salary. All the while, shareholders in Mayan have been subjected to promises of “high impact news, imminent production etc” by Eddie Gonzalez and signed off by Wood that have been shown to be complete fallacies. How much more pushing of their face into the dirt do shareholders want?

It doesn’t stop here however. We have been supplied with, what looks like, prima facie, damning evidence of many issues of conflicted interests and mismanagement within the company that have been diametrically opposed to shareholder’s best interests and we have requested a thorough investigation of these matters. Additionally, we can reveal now that as the primary research provider to the company we have been pressing for additional cash flow and production numbers for a few months which have not been forthcoming. Accordingly, we are no longer prepared to put out research on the company whilst Wood is at the helm as we cannot trust the accuracy and veracity of the company’s data and forecasts.

For the good of all Mayan shareholders I urge you to instruct your broker to lodge an unequivocal protest with a request that Wood resigns immediately. Vote ASAP ahead of Thursday’s AGM, voting AGAINST the re-election of Charlie Wood. We have asked that he proposes two seasoned and experienced professionals to join the Board as soon as practicable, one an operational and finance old hand with significant energy, exploration and resource experience including in the USA, and one an experienced strategist, a qualified lawyer, trouble-shooter and turnaround specialist with great governance and public company credentials. They are prepared to come on board for a combined sum far less than Wood’s and Gonzalez’s salaries and will agree upfront to take a large proportion of their fees in Mayan equity (in complete contrast to Wood).

Throughout the last near 3 years running Align Research we have realised one immutable fact and that is that almost all the success stories in small/micro cap companies have one thing in common – high calibre capable Director’s and management who are aligned with shareholders. Recall that Wood has been involved with Mayan for a number of years and its defunct predecessors Northcote and Everest since May 2010 and he was part and parcel of the shareholder wipe outs in its previous guises including as Northcote Chair and of course he personally picked Gonzales for the Mayan CEO role. He is the common thread of value destruction in the company.

Sadly I am out of the country and so will not be able to attend the meeting this week. What I can say is that the only way I believe, with the knowledge I have of all the moving parts, that we will see a return of value to all Mayan shareholders is to remove Charlie Wood immediately. Do not squander this opportunity. Voice your protest loudly and request the exit of Charlie Wood. I am firmly of the opinion that shareholders will not see returns that justify the company’s assets until he is gone.

R Jennings


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