On December 28 2013, in the Otago Daily Times, Chris Swann says several tens of thousands of tests will be done by the end of 2014. (This has not been denied by Swann as some kind of misquote, as far as we know). Swann also says that CMS accreditation will be through in early 2014. Here's the link in case you want to see the article:
http://www.odt.co.nz/news/business/2...-edge-business
Between December-February 2013: PEB's share price reaches record levels (over $1.75). Clearly the chairman's optimism caused the price to spike. Healthy prices are maintained by the regular release of information to the market that appears to support the Chairman's optimism (the DeTrollo comments, the deal with the Health Innovation Hub, other DHBs in NZ). The share price consolidates around $1.60 or so.
In March 2014, The Chairman and the CEO sell down some of their shares within days of each other. No reasons are given to the market at the time. The share price starts to decline on a lack of information. Another director (Anatoly Masfen) also sells down to below the 5% mark. Investors start to get alarmed and the price declines to around $1 over April and early May.
Then, in late May, we are told that the company has only made tests in the order of several hundreds, rather than the several thousands that many investors had believed to have been done. Early 2014 has also passed, and CMS accreditation has not yet occurred. His notes in the commentary to the market make
no mention of CMS accreditation or medicare (link here:
https://www.nzx.com/files/attachments/194530.pdf). Post result, investors feel aggrieved and alarmed at what has happened.
Swann has beaten the share price up by his hugely over-zealous
comments, and by his
actions, has caused the price to steeply decline.
I'd put the case that in addition to calling for new directors nominations, shareholders should be calling for Swann's resignation as Chairman and as a board member.