Remnant Media in some financial fun

Remnant Media, owners of SMD Publishing, are going to have some fun tomorrow at an extraordinary general meeting, apparently.

A former director of Remnant Media, which runs the porn publishing empire once owned by Richard Desmond, is urging shareholders to vote down proposals to increase its share capital at tomorrow’s extraordinary meeting.

Anthony Edwards, a Remnant Media director until last year, has written to fellow shareholders encouraging them to vote against two of the three resolutions because he believes they “raise serious issues requiring response by the directors”.

Interesting, he also points out the following:

[Remnant pledged] – at the annual meeting last October – to provide a quarterly financial update, [which] had not been honoured. No information has been issued since January, he says. Remnant said it would provide an update at the meeting.

But Mr Edwards is concerned this may not cover the financial position. “The last annual accounts issued were for the period ending December 2004 at the AGM on October 4, 2005. Why isn’t the meeting an AGM with presentation of full accounts for the year ending December 31, 2005? I believe the answer is simply to avoid providing financial information that would have to be made available at an AGM,” he said.

Mr Edwards says he “wants to ensure all shareholders are treated equally and fairly, with full disclosure of information”. He questions why Remnant is proposing to allot 5m new shares to Mr Robinson at 10p. When Remnant raised cash from new investors in 2004 it was at 32.5p a share. Mr Edwards asks: “Why is he the only shareholder offered the opportunity to increase his investment in the company?”