Upset by Wastemate Corp.'s lack of working capital and a dearth of current financial information, a shareholder has asked the San Diego-based manufacturer of water-powered garbage disposers to replace its board of directors at a special shareholders meeting on April 5.
In a Jan. 15 proxy letter to Wastemate shareholders, Charles Herbert Seaton, a former consultant to Wastemate who holds 968,242 shares of the company's stock, complained that despite its $4.1 million in debt and equity financing, Wastemate now suffers from a $599,869 working capital deficit.
Wastemate has missed Securities & Exchange Commission filing deadlines for recent annual and quarterly reports and has recorded revenues of just $112,810 since its founding in 1976, Seaton said.
"The lack of working capital is the bottom line," suggested William Jenkins, Seaton's attorney. "He considers the company's financial situation to be grave."