Business
Maglan Capital Delivers Letter To Madalena Energy CEO And Board Of Directors
Expresses Serious Concerns with the Company's Declining Share Price Performance Outline...
About this update from Centaurus Energy Inc.
[{"type":"text","content":"\n\nExpresses Serious Concerns with the Company's Declining Share Price Performance\n\nOutlines a Series of Actions for the Board to Take Immediately to Protect and Enhance Shareholder Value\n\nReserves its Rights to Take Whatever Future Actions Maglan Capital Believes May Be Necessary to Protect the Best Interests of Shareholders, Including the Calling of a Special Shareholder Meeting to Remove and Replace Current Board Members\n\n\n\nNEW YORK, Dec. 8, 2014 /PRNewswire/ -- Maglan Capital LP, together with its affiliates (\"Maglan Capital\"), a significant shareholder of Madalena Energy Inc. (\"Madalena\" or the \"Company\")(TSXV: MVN and US: OTC: MDLNF) with beneficial ownership of approximately 9.8% of the Company's outstanding shares of common stock, today announced that it has delivered a letter to Kevin Shaw, Madalena's Chief Executive Officer, Ray G. Smith, Chairman of the Board, and to the other members of Madalena's Board of Directors.\n\nFull text of Maglan Capital's letter to Madalena:\n\nDecember 8, 2014\n\nRay G. Smith, Chairman of the Board of DirectorsKevin Shaw, Chief Executive OfficerDouglas BrooksSteven B. SharpeBarry B. LarsonKeith Elliott Macdonald Ving Y. WooJay P. Reid\n\nc/o Madalena Energy Inc.3200, 500 – 4th Avenue SWCalgary, Alberta  T2P 2V6Canada\n\nGentlemen:\n\nInvestment funds affiliated with Maglan Capital LP (\"we\" or \"Maglan\") are significant shareholders of Madalena Energy Inc. (\"Madalena\" or the \"Company\"), with holdings together representing beneficial ownership of approximately 9.8 percent of Madalena's outstanding common equity. \n\nWe have been invested in the Company for over a year, and we have substantially increased our position during that time frame.  In 2014, the share price of Madalena has declined an astounding 67%.  Over the course of the year, the Company incrementally issued additional equity three times, including an equity raise in connection with the purchase by the Company of the Argentine assets of Gran Tiera Energy (the \"GTE Transaction\"), announced in May 2014, causing a massive amount of share dilution.  In addition to these shareholder destructive equity raises, the Company has failed to execute on any joint ventures or partnerships to create value for shareholders.  Aside from the lack of execution, management has failed to ...