Australian mining and services company Develop Global has moved to strengthen its internal governance after a series of disclosure failures involving its directors, including a substantial share sale by its chairman.
Chairman's Major Share Disposal
Develop Global chairman Michael Blakiston sold 160,000 shares on December 22, banking approximately $743,000 before trading fees. The shares were sold at an average price of $4.646 each.
Following this transaction, Mr Blakiston retains a significant holding in the company, with about 1.29 million shares. At current market prices, this remaining stake is valued at over $6 million.
Company Issues Mea Culpa on Disclosure Lapses
In a separate incident, the Bill Beament-led company was forced to issue a late lodgment notice to the ASX concerning share purchases by non-executive director Duncan Bradford.
Mr Bradford acquired 131,000 shares on market between November 28 and December 5, but the mandatory Appendix 3Y notice was not provided to the exchange within the required five business days. The company attributed this delay to an administrative oversight.
Further complicating matters, it was revealed that Mr Bradford held 4,000 Develop shares prior to his appointment as a non-executive director in October. This holding was not initially disclosed due to what the company called an accounting oversight.
New Protocols Implemented
In response to these lapses, Develop Global has conducted a review of its internal processes. The company stated it has updated its procedures to prevent future errors.
A key change involves the company's share registry, Automic Group, which will now monitor and alert the general counsel, company secretary, and chief financial officer of any changes to a director's securities interest in Develop.
This disclosure chaos also extended to Mr Bradford's initial appointment, which the ASX said was not properly disclosed at the company's annual general meeting last month.
Despite the governance stumbles, Develop Global's share price has shown remarkable resilience. The company's stock has surged more than 105% over the past year and gained about 25% in the last month alone, seemingly unaffected by the disclosure issues.
