Karelian chairman rejects claims by shareholders amid coup attempt.

Prof Richard Conroy responds to allegations money raised was spent on pay for directors

Shareholders who own 17 per cent of Karelian want to oust Prof Conroy and others from the company’s board, saying that they have spent £4.1 million of the £7.9 million that it has raised on directors’ salaries.

Prof Conroy rejected this yesterday, saying that directors have contributed £2 million of the total raised by Karelian, while they have regularly taken shares in the company in lieu of their salaries.

The Irish Times: 11th June 2019

Pressure increases on diamond miner Richard Conroy

...disgruntled investors, who own 17 per cent of Karelian, claim that of the £7.9 million (€8.9 million) the company has raised, it has spent £4.1 million on directors’ pay. Not so, says Prof Conroy, who maintains that directors have in fact contributed £2 million in cash to the company and mainly taken shares in lieu of their salaries

The Irish Times: 11th June 2019


Our Response

Whereas management claim to have "contributed £2 million in cash" into the business, in reality they have charged in excess of €4 million in combined fees and salaries, of which circa half has then been converted into equity at an ever decreasing share price, resulting in them maintaining a controlling shareholding, and significantly diluting other shareholders who have genuinely invested.

Taken from the 2005 to 2015 Company Annual Reports audited accounts, all available to download on the Company Website.

Year Wages, Salaries*
Wlf.&Pension
Share-Based
Payments
Directors
Fees
Cumulative
Total
2004/5 € - € - €65,683 €65,684
2006 €112,500 € - €71,075 €249,259
2007 €139,569 € - €50,538 €439,366
2008 €162,096 €63,026 €50,538 €715,026
2009 €274,292 €41,059 €71,075 €1,101,452
2010 €231,182 €82,118 €70,000 €1,484,752
2011 €252,999 €82,118 €70,000 €1,889,869
2012 €247,731 €82,118 €70,000 €2,289,718
2013 €251,771 €75,118 €70,000 €2,686,607
2014 €256,531 €75,118 €70,000 €3,088,256
2015 €279,092 €44,981 €75,068 €3,487,397
2016 €240,831 €94,871 €75,385 €3,898,484
2017 €289,008 €100,850 €70,000 €4,358,342
2018 €304,826 € - €70,000 €4,773,168

 * apart from Directors, only Kevin McNulty, who incidentally is also employed (and presumably paid) by Conroy Gold & Natural Resources, is listed as an employee of the Company. In 2018, Richard Conroy and Maureen Jones, the two Executive Directors, were paid €192,640 or 63% of the total salary bill

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