Jacobson attempts GTG board spill

Former CEO and founder of listed biotech Genetic Technologies [ASX: GTG] Dr Mervyn Jacobson has moved to remove a majority of directors from the company’s board, including its new CEO.

Jacobson, a non-executive director and substantial shareholder in the company, has informed GTG that he intends to introduce a resolution to dethrone the majority of directors.

He is seeking to remove board chairman Henry Bosch, a well-known corporate governance expert, John Dawkins, former minister and treasurer in the Hawke/Keating governments, and the company’s managing director, Michael Ohanessian, who was only appointed this time last year.

He also wants to sack board members Dr Leanne Rowe, a general practitioner and deputy chancellor of Monash University, and audit committee member David Carruthers.

He is seeking to appoint Grahame Leonard to the board.

In response to the notice, GTG has called a trading halt until Monday.

GTG has long been a controversial player in the Australian biotech industry, taking out patents on non-coding DNA and at one stage suing global sequencing giant Applera.

This year the company angered pathology labs by enforcing its exclusive Australian rights to BRCA1 and 2 diagnostic testing, which it licences from Myriad Genetics.

Jacobson was investigated last year by the Australian Securities and Investments Committee over the purchase of GTG shares by his private company, XY.

At the time, a $10 million loan used to finance a stock option offer was called in.

Recently, two securities trading entities have themselves been charged with artificially inflating GTG stock.

Bell Potter Securities was fined $145,000 this month, and financial adviser Rocco Musumeci was charged by the ASIC in July. Musemeci will face court on December 9.