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Nickel 28 Capital Responds to Value Destructive, Highly Dilutive, Unsolicited and Non-binding Financing Proposal From Shareholder, Announces New Independent Director
Unsolicited, coercive, non-binding and self-serving proposal would result in a materially diminished dividend to all shareholders upon Ramu debt repayment Oppor
About this update from Nickel 28 Capital Corp
[{"type":"text","content":" Unsolicited, coercive, non-binding and self-serving proposal would result in a materially diminished dividend to all shareholders upon Ramu debt repayment Opportunistic proposal and its demands have been unanimously rejected by the Company’s Board of Directors, with the support of the Company’s largest institutional shareholders. BMO Capital Markets and Kingsdale Advisors retained as strategic advisors to help defend shareholder value and protect shareholders against other opportunistic or coercive actions that would harm shareholder interests Nickel 28 announces appointment of new independent director Lance Frericks TORONTO / Feb 08, 2023 / Business Wire / Nickel 28 Capital Corp. (“Nickel 28” or the “Company”) (TSXV: NKL) (FSE: 3JC0) today publicly responds to an unsolicited, non-biding and self-serving proposal received from a shareholder of the Company. On February 6, 2023 the Company received a letter addressed to its board of directors (the \"Board\") from a shareholder proposing a value destructive, coercive and highly dilutive US$15 million private placement financing. The shareholder’s stated purpose for the financing would be to accelerate the Company's business plans. The shareholder demanded a response by 5:00 p.m. on February 8, 2023. Nickel 28 is issuing this news release so that all shareholders are made aware of the Company’s response to these self-serving demands. In connection with its proposal, the shareholder demands the immediate reconstitution of the Board, including the appointment of two unidentified nominees of the shareholder, as well as the grant of preferential investor rights to the shareholder, all of which would in effect give the shareholder a position of significant influence over the Company’s affairs and governance, without offering a meaningful premium or allowing other shareholders to participate on equal terms or affording them an opportunity to vote on such nominees or proposals. Following review, the Board has unanimously determined that the unsolicited proposal is not value enhancing for the Company or its shareholders, other than for the shareholder making the proposal. The Board is of the view that the value of the Company’s assets is far in excess of the value implied by the proposed financing, such that the private placement would be value destructive and economically dilutive for all...