Entrepreneurs threaten Smiles Inclusive wind-up action over $330,000 payment dispute

Sydney entrepreneurs who sold their mobile dental companies to listed Gold Coast group Smiles Inclusive have threatened to wind up the struggling company.

Future Care Dental Group is owned by Smiles Inclusive. Photo: Supplied

SYDNEY entrepreneurs who sold their mobile dental companies to listed Gold Coast group Smiles Inclusive have threatened to wind it up over a $330,000 payment they say is months overdue.

Arthur Bushell and Christian Perez, former owners of Future Care Dental Group, claim Smiles was due to pay them the cash in April but has failed to do so, and has issued the company with a legal letter of demand.

In its warning via legal firm Holding Redlich, the businessmen described Smiles as “clearly insolvent”.

“Today your client is in the same position it was in April 2019 when it defaulted on its obligation to our client, namely can’t pay FCDG, therefore won’t pay FCDG,” the letter said.

“In our client’s view, your client will no doubt wish to reflect long and hard on this evidential fact especially given your client’s subsequent behaviours and that your client was clearly insolvent at the time.”

Arthur Bushell has threatened to wind up listed Gold Coast dental group Smiles Inclusive. Photo: Supplied

Christian Perez. Photo: Supplied

Smiles did not address the specific claims, but said through its public relations firm that it was “the subject of a contractual dispute”.

“The claimants have previously withdrawn a similar claim in acknowledgment that there is a genuine dispute,” it said.

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The company yesterday announced its plan to double the number of its shares on issue through an offer to existing shareholders it hoped would raise $3.3 million.

Proceeds from the offer, underwritten by Morgans, would be used to pay down the company’s debt, contribute to capital expenditure and working capital pay the $250,000 cost of the offer itself.

Dr John Camacho has also taken issue with Smiles Inclusive. (AAP Image/Richard Waugh)

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The accelerated entitlement offer was scheduled to finish today, with shares opened to retail investors from October 2-11.

Mr Perez and Mr Bushell publicised their legal threat through the same public relations agency previously employed by ousted CEO Mike Timoney and former chairman David Herlihy, which currently also acts for disgruntled Smiles joint venture partners Dr John Camacho and Dr Arthur Walsh.

Smiles Inclusive chairman David Usasz.

In the statement, Mr Perez said Smiles was “heading for the rocks”.

“It had only $600k in cash at the end of March 2019, three weeks before Smiles was due to pay us,” he said.

“What’s more the dental industry knows that April is a shocking month for sales due to Easter.

“We have come to Brisbane to collect what belongs to us. If the company wishes to run the gauntlet and take us on in a public forum, so be it.”

Mr Bushell said Smiles had until tonight, Thursday, to respond to their legal threat.

“Thereafter a statutory demand will follow a 21-day process and winding up of Smiles thereafter if we are not paid in full,” he said.