In a story-line fit for a video game, gaming company Mighty Kingdom (ASX: MKL) is set for a drama-packed AGM on November 29 with the Company’s largest shareholder Shane Yeend utilising his massive social network to highlight Mighty Kingdom’s dire financial situation in order to have current Chairperson, Michelle Guthrie, ousted.
In a LinkedIn post on Tuesday evening, Yeend vocally urged all Mighty Kingdom shareholders to vote against the re-election of Guthrie at the upcoming AGM, accompanying the post with a share price chart showing the decline of MKL shares from $0.28 to their current price of just $0.01.
“So the Mighty Kingdom shit show begins as we head into the AGM then EGM and bankruptcy I would guess. 12 weeks of cash left can’t save anyone. Sad considering we are the largest shareholder at 32% Sad I trusted their banker Duncan Gordon. Anyway get the popcorn 🍿. Going to be an entertaining month,” posted Yeend.
Yeend’s 32% holding of Mighty Kingdom, which trades with a market cap around $6 million, is via Gamestar Studios, a gaming company he founded.
After acquiring the stake via a private placement in August 2022, Yeend was appointed CEO of Mighty Kingdom in May 2023, accepting the role for just $1 in remuneration. The decision to take the reins was so Yeend could personally oversee major cost-cutting across the business which would increase shareholder value in the Company that he saw potential in.
Within four months, Yeend stood down and has since been pushing for shareholders not to re-elect Guthrie as Chairperson at the upcoming AGM.
The background of Shane Yeend’s relationship with Mighty Kingdom provides additional context for understanding his concerns for Mighty Kingdom which had just $785k of cash as of 30 September 2023, with a net operating outflow of $1.1m for the September quarter.
In September 2023, it was revealed that Mighty Kingdom had hired lawyers to pursue more than $2 million in settlement funds, which the company claimed were outstanding from Gamestar Studios. This legal dispute further deepens the rift between Yeend and the gaming company he once led.
Mighty Kingdom is an Adelaide-based gaming company that specialises in the development of mobile and online video games. The Company is known for creating immersive and engaging gaming experiences across various platforms, with a focus on mobile gaming, a rapidly growing sector in the industry.
In FY23, Mighty Kingdom reported $6.9 million revenue which represented a 42% increase on the previous year, but also logged a $8.8m operating loss which was an improvement on the previous year’s $10.3m loss.
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
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