Smiles hit by fresh allegation

THE former CEO of embattled Gold Coast dental group Smiles Inclusive has alleged the company cut out a dentist from a share of the multimillion-dollar proceeds from the sale of two clinics.

However, a spokesman for the company denied the claims, stating all financial obligations were settled at the time of sale in December last year.

Mike Timoney, who has been at odds with management since stepping down from the top job in early 2019, claimed Dr Henry Chen was not paid around $745,000 owed to him from the sale of clinics in Gatton and Laidley to 1300SMILES last year for $1.863 million.

Smiles listed in April 2018, consolidating 52 dental practices in one company.

Under the terms of the IPO dentists sold their practices to the company and reinvested 40 per cent of the proceeds back into Smiles in return for a slice of the revenue. Mr Timoney said it was this revenue-sharing agreement that should have resulted in a payout to Dr Chen. “They sold two of his practices to 1300SMILES without remunerating him for his 40 per cent.”

Dr Chen did not return calls.

Smiles Inclusive CEO Michelle Aquilina said: “We are focusing 100 per cent of our time and energy on supporting our dentists and staff through COVID-19 and getting the business back on track. Mike Timoney no longer has anything to do with Totally Smiles and his claims are just an unnecessary distraction when we all have more important priorities to deal with.”

Mr Timoney said his comments did not reflect bitterness at being dumped as CEO.