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Hot stock: ISR slides further as largest shareholder quits board and dumps some shares
SHARES of ISR Capital extended their losses on Thursday, a day after the company disclosed that David Rigoll, its largest shareholder, has not only resigned as an executive director but breached a moratorium by offloading some of his stake in the open market.
Mr Rigoll, 54, who assumed the position since May last year, was responsisble for overseeing the group's investment in the exploration and developmen of rare earth elements asset.
In a filing to the Singapore Exchange late Wednesday, ISR's executive chairman, Chen Tong, said Mr Rigoll resigned with effect from March 6 following a pay dispute with the board of directors. He has accused ISR of not paying him his salary for February this year.
Mr Rigoll has also given notice that he would be withdrawing an undertaking given on Jun 8, 2016 not to sell or transfer his ISR shares.
ISR hit S$0.021 a share, before trading around S$0.022, down 0.8 Singapore cent, or nearly 27 per cent. More than 80 million shares changed hands at 04:26pm on Thursday.
Mr Rigoll has also accused ISR's board for failing to act in accordance with its duties after he questioned the "appropriateness of the appointment" of ISR's previous legal adviser, whose appointment puts it in a conflict of interest. The board has requested for Mr Rigoll to provide evidence to support his allegations, but has to-date, not received any such evidence to support the allegations, which it considers baseless.
In another release, ISR said Mr Rigoll has sold 21.3 million ISR shares at S$1 million, or S$0.047 a share on March 6, the day he resigned.
Following the disposal, Mr Rigoll's stake in ISR Capital has been reduced to 26.07 per cent, from 27.43 per cent previously. He remains the single largest shareholder of ISR.
ISR shares plunged 10.6 Singapore cents, or 83 per cent, to S$0.021 on Monday after it resumed trading after being suspended for more than three months. The stock was battered following the revelation that investigators believe that the company and its stock were influenced and manipulated by John Soh, the chief suspect in the 2013 penny stock crash.