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Greenfire Acknowledges Receipt of WEF Letter Seeking Control of the Company Without Offering a Premium to Shareholders
Calgary, Alberta--(Newsfile Corp. - November 20, 2024) - Greenfire Resources Ltd. (NYSE: GFR) (TS...
About this update from Greenfire Resources Ltd.
[{"type":"text","content":"Greenfire Acknowledges Receipt of WEF Letter Seeking Control of the Company Without Offering a Premium to ShareholdersCalgary, Alberta--(Newsfile Corp. - November 20, 2024) - Greenfire Resources Ltd. (NYSE: GFR) (TSX: GFR) (\"Greenfire\" or the \"Company\"), a Calgary-based energy company focused on the production and development of thermal energy resources from the Athabasca region of Alberta, Canada, today confirmed it has received a letter (the \"WEF Letter\") from Waterous Energy Fund III (Canadian) LP, Waterous Energy Fund III (US) LP, Waterous Energy Fund III (International) LP, Waterous Energy Fund III (Canadian FI) LP and Waterous Energy Fund III (International FI) LP (collectively, \"WEF\"), which recently announced the acquisition of approximately 43.3% of Greenfire's issued and outstanding shares, in which WEF called for the resignation of all current Greenfire directors to be replaced by its handpicked nominees, an effort Greenfire believes is an attempt to secure control of the Company without making an offer to all shareholders. Additionally, WEF has submitted a requisition for a special meeting of shareholders to replace the existing Greenfire directors if they do not immediately resign. Greenfire's Board of Directors (the \"Board\") has always sought to act in the best interests of Company stakeholders and have taken decisive action to protect the interests of minority shareholders. These actions have included the adoption of a new, limited-purpose shareholder rights plan that is designed to ensure, to the extent possible, that all shareholders of the Company are treated fairly and equally in connection with any unsolicited take-over bid or other attempt to acquire control of Greenfire. Greenfire has also filed an application to the Court of King's Bench of Alberta to address the sale of shares to WEF from each of Allard Services Limited (a corporation controlled by Julian McIntyre, the former Chair and former director of the Company), Annapurna Limited (a corporation controlled by Venkat Siva, a former director of the Company), and Modro Holdings LLC (collectively, the \"Selling Shareholders\"). This transaction has delivered negative control to WEF at a very low premium, hindering Greenfire's previously initiated strategic review process, which is intended to maximize value for all shareholders.Greenfire believ...