Keybridge Capital said its "concerns have now turned to outrage" as Molopo Energy, in which it has a 20% ownership stake, revealed another US$23 million transaction in an asset the manager considers worthless.
This transaction with Drawbridge Energy Holdings follows about US$11.5 million being paid to Gil Feller in July 2017.
"These actions have seen a total of US$35 million leave Molopo in return for assets that Keybridge believes are essentially worthless. The actions of Molopo are compounded by the fact that this has occurred in flagrant disregard for the ASX listing rules and the Corporations Act by which the Molopo board is bound," Keybridge told Molopo shareholders.
Keybridge said Molopo's board has engaged in conduct which drained the company's cash balance by more than $48 million since June 30; saw Molopo suspended from trading on July 27; breached ASX listing rules; and "actively conducted transactions designed to trigger defeating conditions of two takeover bids for Molopo."
Keybridge is recommending Molopo shareholders vote against the re-election of the current board at the upcoming annual general meeting.
"You now have what may be your final opportunity at the upcoming AGM on May 31 to protect what little is left of Molopo's assets by removing the current directors and putting in place a board with an appropriate mix of skills and experience that better reflects and represents the will and interests of all shareholders and most importantly, the will to recover the very significant sums of money depleted from Molopo," Keybridge said.
The ASX also called out Molopo's behaviour, saying the company has "committed serious breaches of the listing rules." The exchange operator will be reporting its findings to ASIC "for them to consider whether action should be taken against MPO under the Corporations Act."