Time to vote this board out and make history, reads the clarion call of Shane Yeend, a major shareholder of the independent Aussie game developer Mighty Kingdom (ASX: MKL). Yeend is bringing shareholders together to vote out the current board in favour of a “no nonsense board with extensive track records of successful ASX turnarounds” that he has assembled.
This comes as frustrations mount over unfulfilled promises from the existing management.
In its latest strategic review, Mighty Kingdom said that it is collaborating with a consortium of top Australian gaming executives as per the Letter of Intent (LOI). They are finalising a multi-year strategic plan and capital raising strategy, conducting confirmatory due diligence. The goals include achieving profitability in CY24, establishing an AI Gaming lab, and creating an M&A pipeline in key growth areas.
To ensure clarity on the required capital raising and proposed strategic plan, additional work is underway on cashflow forecasting and resourcing. The teams aim to complete this in the coming days, coinciding with formal appointments to the board of incoming Directors. MKL plans to update investors soon, saying that all shareholders will have the chance to vote on the plan’s merits via an Extraordinary General Meeting and participate in a future capital raising process.
This review had little to offer, failing to persuade Yeend and his backers to change their stance.
Over time, Mighty Kingdom’s share price has lost 94% of its value, states Yeend’s newsletter. So, he wants to replace banker Duncan Gordon and implement new strategies, such as appointing a new CEO with 25 years of experience in gaming tech, making Sam White the CEO of Mighty Kingdom Games, cutting costs to eliminate cash burn in a week, injecting $2 million at a premium, canceling the convertible note, and collaborating with a new Board and global gaming Advisory Board to restore the share price from insolvency.
Previously, in November 2023, he rallied the shareholders and got Chair Michelle Guthrie voted out. The upcoming general meeting is being touted as the final frontier, ensuring the whole board goes.
Mighty Kingdom, however, seems determined on its path. On January 10, the Company announced that it has engaged in exclusive negotiations with a group of industry leaders – Mark Aubrey, David Yin, Chris Whiteman, and Hang Zhang (the Consortium). This collaboration and board appointments signify a pivotal moment for the Company, expected to unlock untapped revenue and strategic potential as MKL progresses into its next phase.
Aubrey, a gaming industry veteran from Activision Blizzard and Warner Bros., will join as Non-Executive Director. David Yin, a 25-year mobile gaming entrepreneur, will become Non-Executive Director, bringing expertise from overseeing Google Play in the region and leading Storms Mobile Gaming. Chris Whiteman, with over five years at Animoca Brands, will join as Non-Executive Director to leverage industry connections. Hang Zhang, a McKinsey-trained expert, will take on the role of Chief Strategy and Transformation Officer, guiding MKL’s future with precision and a proven track record.
Dismissing Yeend’s push for a new Board, Mighty Kingdom expressed confidence in the current one. Plus, as a retort to Yeend, it said, “Unlike the new Directors that Mr Yeend of Gamestar/Imagination has proposed and are subject to a vote at the forthcoming January 19th EGM, the proposed new Consortium Directors ALL HAVE RELEVANT AND DEEP EXPERIENCE.” (Caps lock and all, yes).
The problem is, in this passionate letter, the Company promised the final details of the consortium’s offer and a comprehensive plan by January 15. That hasn’t happened, thus adding further fuel to Yeend’s fire.
Now, all eyes are on the EGM on January 19 which will reveal whether the Mighty Kingdom stands as is or receives a new reign (did someone order a Game of Thrones episode set in modern day?).
- Auswide Bank sees NPAT decline by over 45% in the face of tough competition - February 26, 2024
- No discount? No deal: Value-oriented customers leave Adairs in the lurch - February 26, 2024
- Devastating storms and cancellations see Coast Entertainment’s earnings decline - February 23, 2024