Bidstack Group PLC (AIM:BIDS, OTC:FTBGF) said it will carry out a review of the composition of the board and its advisers, and will hold a shareholder meeting later this month to decide whether to remove two directors.
The meeting, which will be held on 27 July in London, was requisitioned by eight retail investors that clubbed together to build a 5.25% stake, according to a Times report last week.
The resolutions to be proposed at the General Meeting are to remove chief strategy officer Lisa Hau and non-executive director Glen Calvert and to appoint Nick Hargrave, formerly of Rothschild and UBS, as a director. He is not the same Nicholas Hargrave who co-founded advisory firm Strand Partners and was a former Downing Street adviser to Theresa May.
This Hargrave, the founder of Moulton Harrox Members (MHM), a subscription-based publisher of investment ideas, is an investor in Bidstack and organised for requisition letters to be written from the retail platforms on which the shareholders held their Bidstack shares, including Hargreaves Lansdown and Interactive Investor, the Times report said.
Since receiving the letters, the video game in-game branding group said it has spoken to major shareholders and agreed to make “a determined and conscious effort to enhance investor relations with institutional and retail investors alike”, as well as reviewing the board and its advisors.
The board said it would use its combined 15.79% shareholdings to vote against the meeting resolutions and has commitments from shareholders representing another 9.23% to vote against the resolution to appoint Hargrave to the board.
Last month, Bidstack reported results that showed an increased loss of £7.7mln for last year, on revenue up 101% to £5.3mln.
After a contract tussle with European partner Azerion, leading to a termination of its commercial partnership last December, revenues for the first half of 2023 are expected to be roughly flat at £2mln which it said showed a "strong recovery following re-engagement with agencies and programmatic platforms".
Bidstack's current nominated adviser is SPARK Advisory Partners and its corporate broker is Stifel.
Shares in Bidstack sank to a new low of 0.7p on Tuesday morning.