The chairman, three directors and the chief executive are bailing out of a company that was floated in December 2015 by Mr John McGrath, who is also a director of optical retail group George & Matilda Eyecare.
Mr McGrath floated Australian Sock Exchange-listed real-estate company McGrath Limited for $2.10 a share, enabling him to pocket $37million. He is now executive chairman.
However, since floating the company’s share price has fallen steadily to 51c as of 23 January.
Documents leaked to The Australian Financial Review show earnings for the five months to November were only $1.8 million rather than the $7.8 million the market is said to have been expecting.
George & Matilda Eyecare is owned by Sydney-based IPIC Holdings Limited, which , for its first 16 months trading, reported a $7.6m loss on revenue of $15.9m including $7m borrowings.
IPIC’s auditor expressed concern about its ability to continue as a growing concern, however said its directors were confident of it being able to do so.
Since then, the company has refinanced.
The chairman of IPIC is Mr Andrew Reitzer,