Business
Concerned Shareholders Question Contradictory Actions of GrowMax
Concerned Shareholders Question Contradictory Actions of GrowMax Canada NewsWire ...
About this update from Coloured Ties Capital Inc
[{"type":"text","content":"\n\n\n\nConcerned Shareholders Question Contradictory Actions of GrowMax\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nVANCOUVER, March 5, 2019\n\n\n\nVANCOUVER, March 5, 2019 /CNW/ - Concerned shareholders, Kulwant Malhi and BullRun Capital Inc. (the \"Concerned Shareholders\") of GrowMax Resources Corp. (\"GrowMax\") (GRO:TSX.V) were disappointed by management's delayed announcement to terminate the PrimaSea acquisition despite knowing the votes in September. It was clear shareholders were not supportive of the dilutive transaction. Additionally, there are several outstanding questions that management and the board have not addressed. \nGross Mismanagement of Treasury\nThe Concerned Shareholders question management and the board's excessive use of funds with no plan to move GrowMax forward. \nThe Concerned Shareholders were alarmed to learn from one of management's many press releases, that cash on hand had dwindled from over $43 million in January 2018 to $25 million, representing a destruction of $0.08 cash per share in shareholder value. This gross mismanagement of funds only reinforces the need for immediate change. \nLoan Repayment\nManagement and the board have not indicated whether Growmax has given formal notice requesting repayment of the $1.8M loan that was approved by the board on August 11, 2018. In the interest of shareholder transparency, the Concerned Shareholders request that management comment on the likelihood of repayment of the loan, which was guaranteed by GrowMax, given that the intent of the loan was for funding of CAPEX of Fertimar's assets and operations. \nPotential Break Fees\nThe Concerned Shareholders seek clarification on whether there are other break fees or costs the company has been burdened with. To this point, management and the board have not indicated whether termination of the PrimaSea acquisition resulted in a break fee, or other associated costs, and if payment has been made.  \nResignation of Director\nNo explanation was provided as to why John Van Brunt, a current director of GrowMax and a nominee...