Business
KWG Principal Shareholders Diverge From Majority
TORONTO, ONTARIO--(Marketwired - July 21, 2016) - The shareholders of KWG Resources Inc. (CSE:KWG)(FRANKFURT:KW6) ("KWG") have held their Annual and Special Gen
About this update from Canadian Chrome Company Inc.
[{"type":"text","content":"TORONTO, ONTARIO--(Marketwired - July 21, 2016) - The shareholders of KWG Resources Inc. (CSE:KWG)(FRANKFURT:KW6) (\"KWG\") have held their Annual and Special General Meeting voting resoundingly in favour of the re-election of the Company's incumbent Board of Directors but then, very ambiguously, not supporting that same management's principle initiative. A tally of proxies delivered for use at the meeting in respect of a proposed Special Resolution intended to provide the market in KWG's shares with possible additional liquidity mechanisms, indicated that, if put to a vote, the Special Resolution would fall short of the desired two-thirds of the votes represented at the meeting. Accordingly, the meeting was then adjourned without a vote being held in respect of the Special Resolution to a date to be announced. Annual Meeting voting results Of KWG's 961.3 million outstanding shares, proxies for a total of 501 million shares were voted at the meeting re-electing as directors Douglas Flett (98.43% in favour), Thomas Pladsen (98.41% in favour), Donald Sheldon (98.44% in favour), Frank Smeenk (98.77% in favour) and Cynthia Thomas (97.37% in favour). However, proxies representing 200.2 million shares were instructed to be voted against the Special Resolution seeking authority to create (by conversion of common shares for holders electing to do so) multiple voting shares re-convertible into their constituent common shares. The Company reported that its two largest shareholders, voting some 36% of the shares represented in person or by proxy at the meeting, had provided proxies that opposed the initiative which was overwhelmingly supported by the majority of KWG's numerous individual shareholders. In the result, only some 60% of the votes available to be cast at the meeting were in favour and the meeting was adjourned without the Special Resolution having been put to a vote. \"Since 1929 the 'penny stock' market has been denied access to margin credit and put-and-call option trading\", said KWG President Frank Smeenk. \"This has perhaps in the past served well the interests of promoters and their underwriters, but often not so much the investors. We are determined to bring the benefits of those liquidity mechanisms to the owners of KWG so that its value can be fairly established in capital markets which include both those mechanisms an...