Sacking of Uniti Wireless co-founders brought up by new CEO before ASX debut

Uniti Wireless’s board has revealed the decision to terminate the employment of founders Che Metcalfe and Sasha Baranikov was considered before the company even listed on the ASX.

Che Metcalfe and Sasha Baranikov — co-founders of Uniti Wireless. photo Calum Robertson

• NBN challenger Uniti Wireless lists on ASX
• Uniti co-founders sacked just after debut on ASX
• Uniti dodges questions over co-founders’ relationship

Uniti Wireless’s board has revealed the decision to terminate the employment of founders Che Metcalfe and Sasha Baranikov was considered before the company even listed on the ASX.

At least one angry shareholder has told The Advertiser he referred the sacking of the company’s founders, who were also board members, to the ASX, and today the company responded to queries from the stock exchange.

The company reiterated its earlier claim that the pair were sacked as part of the “rationalisation program” associated with integrating Uniti and FuzeNet, which it acquired as part of the listing on the ASX.

This acquisition formed part of the business plan included in the prospectus, which also envisaged the ongoing employment of Mr Metcalfe and Ms Baranikov.

Uniti told the ASX today that: “On 12th February, the day after the completion of the acquisition of FuzeNet, the CEO advised the chairman that he believed that the termination of the employment of Mr Metcalfe and Ms Baranikov was in the best interests of the company and necessary to enable the commencement of the rationalisation program he had developed, including the need to implement change rapidly”.

“On 12th and 13th February (the date of listing of UWL) the chairman advised the non-executive independent directors of UWL of the CEO’s recommendation that the employment of Mr Metcalfe and Ms Baranikov be terminated by the company.

“Over these two days the chairman also sought legal advice on the implications of adopting the CEO’s recommendation.

“It was during this process the requirements of the constitution of the company were identified.’’

This “requirement” refers to the fact that there was a clause in the company’s constitution which required a director to leave the board if they were an executive who ceased to be employed by the company.

Uniti said in the statement “There was no intention of the board to remove Mr Metcalfe and Ms Baranikov as directors once their employment had been terminated” but that their hand was forced by the constitution.

The statement says that the independent directors, Kathy Gramp and John Lindsay, unanimously agreed to support the CEO’s recommendation, which was communicated back to the CEO on the evening of the 13th.

Uniti said it did not supply a supplementary disclosure to the ASX before listing because the decision to terminate them was “made by the board during the evening of 13th February 2019, after the listing of the company’’.

Uniti Wireless’ initial public offer closed at the end of January with the company overcoming a challenging investor market to raise $13.2 million through the issue of nearly 53 million shares at 25c each. Uniti shares are currently trading at 18.5c.

Uniti provides line of sight, fast broadband via towers and has been targeting disgruntled NBN customers in its marketing efforts.

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