The revelation came within a week of a United States short seller revealing Quintis was in its sights and publishing explosive and contested claims about the credibility of its business model. Quintis' thousands of hectares of sandalwood plantations in northern Australia are the source of what it bills as a "super-ingredient", being Indian sandalwood oil.???

Mr Wilson's shock resignation as managing director "increases our conviction in our short opportunity and we see it as rats fleeing a sinking ship," said Glaucus' head of research, Soren Aandahl, who has a high-profile short position in Quintis shares, and drew a parallel with the events that unfolded at another company, Surfstitch. Justin Cameron, a co-founder and former chief executive of the online apparel retailer, quit Surfstitch in 2016 to pursue a private equity-backed privatisation, which failed to materialise.

The former TFS revealed Mr Wilson's exit in a statement to the ASX on Tuesday less than 24 hours after Quintis escalated its defence against short sellers. He advised the board of his plans on Monday night.

The shares rallied 13 per cent to $1.25 in response, reversing some of their 22 per cent loss since Glaucus argued that the company's real value was zero and likened the business to a Ponzi scheme. Quintis consistently disputes all of Glaucus' claims and accused it of "multiple inaccurate conclusions" and "cherry-picked facts interpreted for their own benefit".

Mr Wilson described his partner as "well funded" and "credible", in a statement explaining his intentions. "I have personally received several approaches over the years from parties interested in Quintis, although none have progressed to a formal proposal," he said. The alternative proposal demanded his full attention and "if successful, I intend to resume my duties with the company", he said.

Quintis separately informed shareholders of "an unnamed international corporation" that was working with Mr Wilson to attempt a play for control of the board. The founder and former managing director owns around 13 per cent of the company in his own right.

"The company notes that it has not received any formal or informal proposal, nor has it received any specific information in relation to what the potential terms and conditions may be if an acquisition proposal is submitted," Quintis said.

Mr Wilson said, via a spokesman, that his decision and its timing was unrelated to Glaucus' report and that he "fully endorses" the company's rejection of the short seller's claims. He was approached "in recent days" in his capacity as Quintis' largest investor.

On Monday, Quintis revealed that orders from its biggest customer in China, Shanghai Richer Link, had dried up this year, which coincides with an investigation by Chinese authorities into duty avoidance by sandalwood importers.

One employee from Quintis was questioned with no further inquiries and the company insists it is fully compliant with all regulations.

The Perth-based producer remains confident it can shift its sandalwood to an alternative buyer in China where its wood and oil is used in carvings, prayer beads and Chinese medicine and is said to be in high demand.

It also detailed the names of uncontracted customers in the fragrance and cosmetics industry.

The revelation of the identity of its biggest commercial partner in China was in response to questions posed by the ASX as short interest mounted. According to Australian Securities and Investments Commission figures, 12 per cent of Quintis stock is held by short sellers as of March 22.

Quintis chairman Dalton Gooding, who is a former West Coast Eagles club chairman, said the company had retained advisers, as had Mr Wilson.

Glaucus is expected to publish further analysis on Quintis.