Genetic Technologies tanks as CEO resigns in protest over board spill

Genetic Technologies (ASX:GTG) has shed over a quarter of its share value following the resignation of its CEO Paul MacLeman a yesterday’s annual general meeting.

MacLeman’s resignation came in protest after noted biotech entrepreneur Mel Bridges and Huw Jones were dumped from the board by shareholders.

The Australian is reporting that GTG founder, and major shareholder, Mervyn Jacobson, hefted his 29 per cent stake behind the “no” vote against Bridges and Jones.

Following the vote was a string of resignations, including CEO Dr Paul MacLeman, VP Legal and Corporate Development Dr David Sparling and fellow board member, Greg Brown.

Mal Brandon has been appointed the chairman of the board, and COO Alison Mew has taken over as Acting CEO.

Following the spill, Bridges said “it is regrettable that a company with the potential of GTG was unable to reach middle ground with its major shareholder.”

During the AGM the company also announced it has a database of 1700 companies it believes it is infringing on its intellectual property, and that as a consequence, it anticipates “many more years of available licensing”.

GTG shared were trading at 8.7 cents yesterday but plummeted 29% to 6.2 cents as of around 1pm Wednesday.