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ROBERT WILLIAMSON AND TALMAGE ADAMS PROPOSE ALTERNATIVES TO DILUTIVE TRANSACTION AT ZIMTU CAPITAL
ROBERT WILLIAMSON AND TALMAGE ADAMS PROPOSE ALTERNATIVES TO DILUTIVE TRANSACTION AT ZIMTU CAPITAL...
About this update from Zimtu Capital Corp.
[{"type":"text","content":"\n \n \n \n ROBERT WILLIAMSON AND TALMAGE ADAMS PROPOSE ALTERNATIVES TO DILUTIVE TRANSACTION AT ZIMTU CAPITAL\n \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 Canada NewsWire\n \n \n \n \n \n \n TORONTO\n \n \n ,\n \n \n Feb. 6, 2023\n \n \n /CNW/ -\n \n Robert Williamson\n \n and\n \n Talmage Adams\n \n (\"Concerned Shareholders\") report an update to their discussions with management of Zimtu Capital Corporation (\"Zimtu\" or \"the Company\"), listed on the TSX Venture Exchange (TSXV: ZC).\n \n \n The Concerned Shareholders state: \"On\n \n January 23\n \n , we filed an Early Warning Report and Press Release indicating our intention to engage constructively with management to discuss value-enhancing strategies, including active management of Zimtu's portfolio and shareholder capital returns via accretive share repurchases.\n \n \n \"On\n \n January 25\n \n , two days later, the Company announced a\n \n $1,000,000\n \n private placement (\"the Dilutive Placement\") of Units consisting of one Common Share at\n \n $0.07\n \n , and one Full Warrant at\n \n $0.09\n \n , which management proposes to issue to, among others, \"close personal friends and close business associates of directors and officers of the Company\".\n \n \n \"We subsequently presented to Zimtu Directors analysis demonstrating that liquid securities held by Zimtu, with aggregate value\n \n $2.6 million\n \n , could be disposed in less than 1 month, with minimal market impact, and no adverse change to the Company's business.  Proceeds would suffice to fund investments equal to Zimtu's average annual capital investment during the past 5 years, with enough cash remaining to complete a full annual Normal Course Issuer Bid in 2023.  Therefore, Zimtu currently has no need to raise equity.\n \n \n \"Management's proposal to issue 14,285,714 Shares plus 14,285,714 Warrants would result in a 109% increase in Zimtu's fully-diluted shares outstanding, at a more than 80% discount to Net Asset Value Per Share (\"NAVPS\").  Thereby, it would cause an immediate decline of more than 40% in fully...