The Revolution Beauty Group PLC (LON: REVB) share price surged 59.7% after the restoration to trading of its shares 10 months after being suspended in September 2022. Investors were happy to see REVB shares resume trading on the London Stock Exchange’s AIM segment.
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The rally in Revolution Beauty shares occurred despite the ongoing conflict with Boohoo, which owns 26.6% of the company’s issued share capital. Boohoo attended the company’s Annual General Meeting (AGM) held yesterday, where it proposed removing the CEO, CFO and the company’s chairman from office.
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However, Boohoo’s attempts were thwarted by the sole remaining independent director Jeremy Schwartz, who went ahead and reappointed the three directors who had been duly removed from office at the AGM and appointed two new non-executive independent directors.
Still, today’s rally indicates that the ongoing boardroom disputes between Boohoo and Revolution Beauty do not perturb investors. Most investors are happy to see Revolution Beauty shares listed on the AIM market, where they can be bought and sold. So far, the buyers outnumber the sellers.Â
Furthermore, Revolution Beauty has warned that Boohoo’s actions could lead to a delay in preparing the financial results of the 2023 fiscal year, which ended on 28 February 2023. The full-year financial results should be published by the end of August 2023; hence, the company cannot afford further delays.
Revolution Beauty also noted that Boohoo was trying to stage a corporate board coup without submitting an offer for the company or paying a single cent to the company’s shareholders. The company also awarded millions of share options to the CEO and CFO, which Boohoo vehemently opposed.
However, Revolution Beauty defended its actions, saying that the management team had worked tirelessly over the past ten months to resolve the historical issues that led to its shares' suspension in September 2022. Therefore, the stock options awards were warranted.Â
Revolution Beauty continues to operate as usual for now. Still, Boohoo is pushing for a general meeting to remove the company’s CEO, CFO and directors and replace them with its preferred candidates.
*This is not investment advice.
The Revolution Beauty (REVB) share price.
The Revolution Beauty share price soared 59.74% to trade at 30.35p, from its last closing price of 19.00p.
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