Business
Concerned Shareholders of Karnalyte Resources Inc. submit shareholder proposal and urge incumbent board to heed the call for change
CALGARY , Jan. 20, 2015 /CNW/ - Robin L. Phinney , a significant shareholder and the des...
About this update from Karnalyte Resources Inc.
[{"type":"text","content":"\n\nCALGARY, Jan. 20, 2015 /CNW/ - Robin L. Phinney, a significant shareholder and the designated representative of a group of concerned shareholders (collectively, together with Mr. Phinney, the \"Concerned Shareholder Group\") of Karnalyte Resources Inc. (TSX: KRN) (\"Karnalyte\" or the \"Company\"), urge the incumbent board of directors to heed the call for change to the Company's board in order to restore shareholder confidence in the Company's leadership and avoid the unnecessary delays, distractions and costs of a proxy contest.\n\nShareholders Support the Proposed Board Changes\n\nSince announcing the Concerned Shareholder Group's proposed director nominees and the reasons for requisitioning a special meeting of shareholders on December 23, 2014, Mr. Phinney has received letters of support from many Karnalyte shareholders who, together with the Concerned Shareholder Group, represent an aggregate of approximately 30% of the issued and outstanding shares of Karnalyte in support of the board changes proposed by the Concerned Shareholder Group.\n\nRobin Phinney commented: \"As a co-founder and the second largest shareholder of the Company, it is my sincere hope that the incumbent board will listen to the building wave of shareholder support and implement the board changes to avoid an unnecessary and disruptive proxy contest, and to enable the reconstituted board to refocus the Company's resources on building long-term shareholder value for all shareholders.  I am disappointed and saddened by the fact that, to date, the incumbent board has not addressed the concerns of a significant number of shareholders.  The incumbent board appears to be primarily interested in taking steps to entrench itself.\"\n\nDisappointment with Delayed Requisitioned Meeting Date\n\nMr. Phinney also expressed his disappointment with the incumbent board's failure to call the requisitioned meeting in a timely manner, and instead chose to delay the requisitioned meeting until May 12, 2015, three months later than the requested date of February 13, 2015.\n\nMr. Phinney commented: \"The stated reason for the delayed meeting – to give the incumbent board more time to explore a potential US$700 million financing – is particularly disconcerting because the requisitioned meeting is essentially a confidence vote on the incumbent board an...