Sequoia enters trading halt as director steps down

On Tuesday morning, the ASX issued a temporary pause in trading in securities of Sequoia Financial Group.

Shortly after, it issued another notice halting trading at the request of Sequoia, which it said would release an announcement.

“Unless ASX decides otherwise, the securities will remain in trading halt until the earlier of the commencement of normal trading on Thursday, 31 July 2025; or the release of the announcement to the market,” the trading halt said.

In its request for a halt in trading, company secretary Natalie Climo said it was “pending the response from Sequoia regarding a price query” and that it was to “avoid trading taking place on an uninformed basis”.

The request added that it expected to make the announcement today, after which the trading halt would end.

Sequoia’s share price tumbled around 30 per cent on Monday, dropping from its closing price of $0.34 on Friday to $0.24 – its lowest price since 2020.

Earlier on Tuesday morning, Sequoia announced that non-executive director Charles Sweeney had stepped down from the board of the after six years.

In an ASX statement, the firm said it had “become increasingly difficult for him to balance his other commitments” with the Sequoia role.

Sweeney is currently a managing partner at law firm Cooper Grace Ward in Brisbane.

Alongside the non-executive director position at Sequoia, which he has held since March 2019, Sweeney was previously the chair of the risk and compliance committee and a member of the audit committee. He also stepped into the chairman role on an interim basis after the exit of John Larsen in April 2024 until Mike Ryan was appointed in August 2024.

Sequoia said the board is in the process of confirming his replacement and may opt to appoint two individuals in light of the increased responsibilities associated with the role. Sweeney will remain on hand to ensure a successful transition to the new individual.

The board currently consists of chief executive Garry Crole, chairman Mike Ryan, and Kevin Pattison as non-executive director.

“Charles has always been an engaged and supportive member of the board, and he is fondly remembered for stepping into the chair’s role on an interim basis during a difficult period for our business prior to the appointment of Mike Ryan in late 2024,” Crole said.

“On behalf of the entire Sequoia team, we extend our sincere thanks for his commitment and wish him continued success in his future pursuits.”

The board has seen a number of shake-ups in recent months after a shareholder rout sought to remove Crole and Pattison from the board and replace them with Peter Brook and Brent Jones as they sought to improve corporate governance and create a more focused and profitable business.

While the move was unsuccessful at an extraordinary general meeting in June 2024, Crole agreed to step down in FY27 and work with the firm to find a successor.

The firm has also been caught up in the Shield and First Guardian collapses, with its subsidiary InterPrac authorising Ferras Merhi and his firm Venture Egg, which are responsible for more than 6,000 clients investing in the funds.

In May, InterPrac cut ties with both Merhi and Venture Egg, with the licensee ceasing its authorisation of both parties.

It has also seen a pair of substantial holders reducing their stake in the firm.

Acorn Capital was the first to significantly reduce its holding, disclosing on 13 June that it was no longer a substantial holder following a series of trades since April.

The second was the Australian Wealth Advisors Group (AWAG), which had only bought a significant chunk of Sequoia in February this year.

On 15 July, AWAG disclosed that it had reduced its ownership stake in Sequoia from 18 per cent to slightly above 15 per cent.

While AWAG did not wish to comment on its individual trading decisions, a spokesperson for the firm told ifa that there are “challenges ahead” for Sequoia.