Smiles Inclusive continues to trade barbs with detractors as $3.3 million capital raising continues

Dental Group Smiles Inclusive says a demand for payment by two Sydney entrepreneurs is “an abuse of process”, claiming it is a deliberate attempt to undermine the company’s capital raising. It’s just the latest in a spat that’s been raging for months.

Smiles Inclusive shareholders have had a bad time. Photo: iStock

DENTAL Group Smiles Inclusive says a demand for payment by two Sydney entrepreneurs is “an abuse of process”, claiming it is a deliberate attempt to undermine the company’s capital raising.

However the men behind the demand, who say they’re owed $330,000 by the ASX-listed company, have described its claims as “bizarre”.

The public tit-for-tat between the company and a range of past and present stakeholders has dragged on almost as long as Smiles has been listed on the ASX.

Its share price, which began trading in April last year at $1, has sunk as low as 3.5c in recent months as it faces ongoing legal and financial problems.

Among the problems is a claim from Arthur Bushell and Christian Perez, former owners of Future Care, which was bought by Smiles Inclusive.

The pair says Smiles was due to pay them $330,000 in April but failed to do so — a claim the company has said was “part of a broader dispute”.

Christian Perez. Photo: Supplied

Arthur Bushell. Photo: Supplied

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Smiles said the Future Care pair had previously withdrawn the claim, and accused them of reviving it to undermine the company’s current entitlement offer.

Smiles is midway though its effort to raise $3.3 million from shareholders via a 5c per share offer.

The offer is underwritten by Morgans, whose clients make up a substantial

In a statement to the ASX, Smiles said Future Care had engaged the same lawyers and public relation firm as two Smiles joint venture partners, John Camacho and Arthur Walsh, who have initiated a class action against the company they say could be worth $40 million.

Dr John Camacho. (AAP Image/Richard Waugh)

“Future Care’s new lawyers have now reissued the demand, notwithstanding that they are aware of the broader factual scenario which resulted in the withdrawal of their client’s earlier demand,” Smiles said.

“The Company has written to Future Care’s new lawyers expressing its concern that the reissued demand is an abuse of process, and requesting its withdrawal.

“If the demand is not withdrawn, the Company intends to vigorously defend its position including applying to have the demand set aside and to recover its costs on an indemnity basis.”

Mr Bushell, in his own media statement, described Smiles’ statement as “bizarre” and “a

desperate tactic to try to avoid payment”.

“We have 330,000 good reasons for wanting to get paid.”

Smiles Inclusive chairman David Usasz. (AAP Image/Richard Waugh)

The Gold Coast group revealed a $31 million net loss for last financial year in its audited results, far worse than the $18.9 million it flagged in preliminary results on August 30.

The audited results were released as the company embarked on its second capital raising exercise in four months, with auditor KPMG saying there were “material uncertainties” in the Group’s ability to continue as a going concern.

Critics of Smiles have claimed its decision to omit the audited figures from the investor presentation for the entitlement offer was misleading to potential investors.