Sandalwood company wants more time

SHARE COLLAPSE: Quintis' headquarters in Katherine.
SHARE COLLAPSE: Quintis' headquarters in Katherine.

EMBATTLED sandalwood company Quintis has today asked the Australian Stock Exchange for more time to explain its dramatic share price crash.

The company was due to come out of a trading halt today but has received a voluntary suspension of its securities.

Quintis has large sandalwood plantations located in the Katherine area.

This will give the company about five days to offer an explanation for the recent crash in share prices of almost 44 per cent.

The company revealed earlier in the month its board had only just learned a major export contract had been cancelled almost six months ago.

A law firm has indicated it may gather support for a class action as a result.

Quintis has lost more than half of its market value since it was its future was questioned by an overseas trader in March.

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

Quintis told the ASX it was working on giving the market an updated outlook.

The company has had a name and leadership change in recent months.

Deputy Quintis chairman Julius Matthys has been appointed to the position of interim chief executive officer of the sandalwood producer.

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

A stock trading company, Glaucus, appears to have triggered recent 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.