However, Zylotech then issued a further general announcement stating that Fraser-Clay's requisition had been received, but declaring only the initial $500,000 investment loan. The further $1 million offered by Fraser-Clay was not mentioned in the announcement.
"The directors also consider that the funding arrangements proposed is not in the interest of shareholders," Zylotech's McKay stated in the general announcement. "The directors are exploring other options and to this end has mandated a financial advisor, Novus Capital Partners to advise the company."
On 17 February CRN emailed McKay a number of questions regarding the Fraser-Clay requisition. CRN asked why Zylotech thought the requisition was deficient and invalid, why the funding proposal was not in the shareholders' interests, and if the requisition was not material to shareholders' interests, why had Zylotech now put out three announcements about it?
CRN had received no response from Zylotech at time of print. Interim CEO and company secretary Steve McKay has refused repeated requests for comment.
In an interview with CRN, Fraser-Clay said he has been an avid supporter of the company and has helped Zylotech's former CEO, Nicholas Sikitotis, by spruiking the company to channel partners overseas.
"I have offered my help to the current board but they have regarded me as a threat," said Fraser-Clay. "The company has a very good product and so much of the ugliness hurts the reputation of the senior staff who aren't involved with the board."
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