Rising local Internet player LibertyOne has been forced to come clean with reasons for the sudden disappearance of its chief executive officer Don Hagans a couple of weeks ago, following a plunge in share prices.
Describing LibertyOne as "a content aggregater not a content developer", a spokesperson for the company said the situation between Hagans and board members had become "unworkable". Rumours of a shareholder backlash to an executive option plan are also prevalent in the reasons for the "resignation" of Hagans.
"The decision was made by the board of directors to discontinue his consultancy agreement," the spokesperson told ARN yesterday.
"It was decided that things just weren't going in the right direction and that terminating the agreement was in the best interests of the company and its shareholders."
A tailspin in LibertyOne's share price which saw it stoop to an all time low of $0.82 last week prompted the ASX to query any possible reasons for such a fall. Since then the price has recovered to $0.94 but is still well below its best price since the float of $1.34 (this takes into account a one into four share split that took place earlier this year).
LibertyOne was happy enough to write it off as being caused by "nothing in particular".
"The market in general has been a little volatile over the last few weeks, especially Internet stocks," the spokesperson said.
In other news at LibertyOne, the spokesperson said there was no truth to the rumour that there has been a takeover attempt by Kerry Packer's PBL, which was confirmed as an investor. It is also apparent that the May 31 AGM would raise the possibility of a further float issuing nearly 15 million shares to buy Web developer Zivo and a controlling stake in Satellite Marketing Company.
Meanwhile, the launch of Excite Asia-Pacific, which is a joint initiative between LibertyOne and US-based Internet company Excite, is going full steam ahead and is scheduled for next week.
"We will be offering similar product to what Excite does in the States, but with all local content," the spokesperson said of the Excite Asia-Pacific project.