Revolution Beauty, the mass beauty retailer operating through multiple channels, has successfully resolved a longstanding issue by reaching an amicable agreement with its former CEO, Adam Minto. Minto, who played a key role in co-founding the company, will pay Revolution Beauty a total of £2.9 million as part of the settlement. This agreement pertains to events that led to a delay in the audit of Revolution Beauty’s financial year 2022 results, as well as the suspension of trading of the company’s shares on AIM (Alternative Investment Market) during Minto’s tenure as CEO. Importantly, both parties have come to this settlement without admitting or accepting any liability.
The settlement amount will be disbursed in six annual installments, with the initial payment of £483,333.35 due on March 28. Subsequent equal installments of £483,333.33 will be made on March 28 of each calendar year until March 28, 2029. In the event of late payment, an interest rate of 8% per annum will be applicable.
The board of Revolution Beauty perceives this settlement as fair for the company. Alistair McGeorge, the Non-Executive Chairman, expressed his contentment with the agreement, emphasizing its ability to allow the company to focus on its future endeavors. He also announced an upcoming Capital Markets Event on February 8, during which Revolution Beauty will provide an update on its strategic plans.
Although the matter with Adam Minto has been resolved, Revolution Beauty is still confronting allegations made by a former shareholder, Chrysalis Investments. Chrysalis Investments has lodged claims of deceit, negligent misstatement, and misrepresentation against the company. This faction incurred a loss of £40 million when it sold its stake in Revolution Beauty subsequent to an accounting probe that resulted in the suspension of the company’s shares. Originally acquired for approximately £45 million in July 2021, the shares were sold for approximately £5.7 million in late 2022.
Chrysalis Investments argues that Revolution Beauty provided misleading information both prior to the shareholder’s stake purchase and during the holding period, with the misstatements and significant omissions having a material impact. However, Revolution Beauty strongly refutes these allegations and has been actively engaging with advisors representing Chrysalis Investments to address the matter constructively.
Despite the lingering allegations, the settlement with the former CEO signifies a substantial forward stride for Revolution Beauty. With this issue now resolved, the company can shift its focus towards the future and the successful execution of its strategic plans. As the beauty industry continues to evolve, Revolution Beauty aspires to position itself as a market leader, offering innovative products and delivering exceptional customer experiences.
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