Ex-CEO of Gold Coast dental group Smiles Inclusive Mike Timoney sells shares for massive loss

Smiles’ founding CEO and major shareholder has exited the company with a massive financial loss.

AFTER Smiles listed on the ASX in 2018 founding CEO Mike Timoney’s stake was worth close to $11 million.

Mr Timoney confirmed to the ASX this morning that he had sold 9.659 million shares he held in his superannuation company for just 1.1 cents per share – a combined total of $106,249. That is just more than 1 per cent of its value two years ago.

The sale was done to a private buyer (Smiles shares are currently suspended from trading on the ASX) on May 7 after his shares were released from escrow in late April.

Mr Timoney told the Bulletin the financial loss from two years ago was a “tragedy”.

Mike Timoney has sold his shares in Gold Coast dental roll-up Smiles Inclusive. Pic Annette Dew

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“We had the boardroom bust-up in March (2019) and that’s when I said to call the EGM (for May, 2019),” he said.

“The shares were then worth 30 cents (each). I vividly remember it. I said to the remaining directors if I could I would be walking out of the room and selling my remaining shares.”

Mr Timoney stepped down from the role at the helm of the Burleigh-based company in early 2019 following a poor-first half result. He has been a fierce critic of management ever since.

After standing down he pushed for an EGM unveiling an “alternative board”, which included Dr John Camacho, but failed to get the numbers to vote for his picks and was voted off the board.

Mr Timoney said he could not sell his shares at that point because of the escrow so he was “like a passenger to the car crash”.

“I ended up selling at 1.1 cent,” he said.

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“It’s just a tragedy. At its high point it (his stake) was worth $11 million.”

Smiles has been contacted for comment.

Its shares are suspended from trading pending the company releasing its half-year results.

Smiles recently announced it had reopened the last of its practices that had been closed due to COVID-19 related restrictions. It also said CFO Emma Corcoran was leaving the company.

The Burleigh-based company is suing Mr Timoney in the Supreme Court for what it alleges were serious misconduct and breaches of law from his time as CEO, including mismanagement of company funds.

Mr Timoney has lodged a defence and denies the claims.