Investor claims Sandalwood is on the nose

Quintis has large sandalwood plantations located in the Katherine area.

Mr Matthys spent 34 years with BHP Billiton in senior executive roles, including Operations President of the Worsley Alumina joint venture and Vice President Corporate Affairs.

He is currently Chair of Doray Minerals Ltd, Chair of Council at John XXIII College, Perth and a Board Member at Celebrate WA.

“Julius has a comprehensive understanding of Quintis, our business strategy and operations, having served on the board from 2003 to 2005 and from 2011 onwards,” Quintis chairman Dalton Gooding said.

“His proven track record and vast international business experience will be of considerable value as we expand the distribution of our wood and oil products to global markets.”

“Julius will commence as Interim CEO with effect from Monday beginning with a review of Quintis’ operations and outlook. He will perform the Interim CEO role while the board assesses the Company’s requirements for a permanent CEO.”

The share price of Katherine sandalwood producer, the newly named Quintis, fellthis week after a turbulent week which saw its founder and major shareholder resign.

The Perth-controlled company owns sprawling plantations and nurseries across more than 2550 hectares in Katherine in the NT.

Quintis, formerly the TFS Corporation, is the world’s largest producer of sustainable Indian Sandalwood, with a listed market capitalisation of about $600 million.

Quintis founder and managing director Frank Wilson spectacularly resigned this week, suggesting he would partner with another investor to take over the company.

Shares in the company went into a trading halt for two days but have plunged amid heavy trade after opening again on the ASX.

A stock trading company, Glaucus, appears to have triggered this week’s chain of events by questioning the worth of the group, particularly its reliance on revenue from tax schemes.

Glaucus is not the first to draw parallels with the managed investment schemes relied on by the sandalwood group to those also involved in the financial disasters of  the Great Southern and Timbercorp plantations a decade ago.

Quintis has strongly disputed the claims made by Glaucus.

Mr Wilson resigned late on Monday to pursue a takeover of the Perth-based former TFS with a partner he declined to name but described as "serious" and "well funded", according to the Australian Financial Review.

Quintis remains confident it can trade with alternative buyers in China where its Indian sandalwood and oil are used in prayer beads, carvings and Chinese medicine.

“We find it hard to believe a buyer would maintain interest in a company which failed to disclose that its supposed largest customer had stopped buying its products," Glaucus said.

Quintis said only 10 per cent of its total income came from its MIS schemes in the past financial year.

The company said it “survived the fallout” in the rest of the MIS sector “principally because Indian Sandalwood is a rare and valuable product which has become increasingly scarce”.

Quintis's share price fell by more than 20 per cent during the week, dipping at one stage to a four-year low of $0.975.