Board wipeout hits local company

Just as Melbourne-based Arovella was celebrating its transition into a clinical stage company after a major win with the FDA, it's been hit with a leadership spill instigated by a major shareholder.

This week the CEO and Managing Director has resigned along with three Board Directors.

The changes were sparked by The Trust Company which holds 5.55 per cent of Arovella shares as custodian for CIP Licensing Limited as responsible entity of the Summit Biotech Fund. Based on Arovella's current market cap of around $86.4 million, Summit has about $4.7 million invested. At the end of December Summit held total assets of $9.87 million in its fund, although at that time Arovella's share price was around a third higher.