(Bloomberg) — Nickel 28 Capital Corp.’s former chief executive officer agreed to relinquish nearly half the stock he owned in the company that accused him and other ousted executives of “serious misconduct.”
Anthony Milewski agreed to return about 4.97 million shares of Nickel 28 as part of a June 17 settlement with the firm that fired him in May, according to a Tuesday statement. Milewski, who helped found the Canadian nickel and cobalt producer, will own and control about 5.72 million shares — or a 6.4% stake — following the disposition. The settlement includes a full and final mutual release of any claims between the former CEO and the company and no admission of any wrongdoing.
Shares of Nickel 28 rose as much as 11% in Toronto, the biggest intraday increase in about six weeks.
The deal appears to end a fight at Nickel 28 that pitted its founders against top shareholder Pelham Investment Partners LP, a New York-based hedge fund. Nickel 28 said it fired Milewski and two other executives after an investigation found evidence that the management team breached their duties and repeatedly lacked judgment. The founders denied the allegations and accused Pelham of trying to push them out of the company.
Nickel 28 said in a separate press release that in connection with the settlement Milewski immediately resigned from the company’s board. The Toronto-based firm said it hasn’t reached any settlement with the other fired executives — Justin Cochrane, the former president, and Conor Kearns, who was the chief financial officer.
Milewski, who once joked he was nicknamed “Cobalt Jesus,” is known for building up one of the biggest cobalt stockpiles in 2018 before prices crashed. He turned his focus to nickel and helped found Nickel 28. The company now owns interests and royalties in mining projects in Canada, Australia and Papua New Guinea.
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Published: 19 Jun 2024, 01:48 AM IST
