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Shen Capital Partners Releases Letter to Pivotree Shareholders, Calls for Formal Strategic Review at 2026 Annual Meeting
Shen Capital Partners Inc. ("SCP"), one of the largest shareholders of Pivotree Inc. (TSXV: PVT) ("Pivotree" or the "Company") with approximately 9.1% of the outstanding common shares, today released an open letter and supporting materials to Pivotree shareholders in connection with the Company's 2026 Annual General Meeting (the "AGM") and announced two shareholder proposals it has submitted for consideration at the AGM.
About this update from Pivotree, Inc.
TORONTO, May 28, 2026 /CNW/ - Shen Capital Partners Inc. ("SCP"), one of the largest shareholders of Pivotree Inc. (TSXV: PVT) ("Pivotree" or the "Company") with approximately 9.1% of the outstanding common shares, today released an open letter and supporting materials to Pivotree shareholders in connection with the Company's 2026 Annual General Meeting (the "AGM") and announced two shareholder proposals it has submitted for consideration at the AGM. The full letter to shareholders and supporting presentation are available at www.pivotreeinvestor.com. The Shareholder Proposals Proposal One — Director Nomination. SCP has proposed the election of Francis Shen, President of Shen Capital Partners Inc., as a director of Pivotree, to provide shareholder-aligned public-company, capital-allocation and M&A experience on the Board during the strategic evaluation that SCP is asking the Board to undertake. Mr. Shen is the former founder, chairman and Co-CEO of Aastra Technologies, a TSX-listed company sold to Mitel in 2014, and Chair of VitalHub Corp. (TSX: VHI) from 2019-2026. Proposal Two — Strategic Review (Non-Binding Advisory). SCP has proposed a non-binding advisory resolution recommending that the Board (a) retain a reputable independent investment bank with relevant sector experience by September 30, 2026, (b) conduct a formal strategic review including a comprehensive sale process, and (c) publicly report the results of the review on or before December 31, 2026. Why SCP Believes a Strategic Review is Warranted Now SCP's view is that the IT services industry is undergoing an unprecedented and rapid transformation driven by the adoption of generative artificial intelligence. The pricing model, the delivery model and the unit economics are all changing simultaneously. Sector M&A multiples have compressed by approximately one-third over the past 24 months, and we can find no credible argument that the floor has been established. In Pivotree's own words in its 2026 management information circular, the Company's "pivot to data and AI-enabled services and solutions has yet to be fully realized." Asking public-market shareholders to underwrite a long-term revenue-mix transformation on a sub-scale platform is a meaningful ask. Strategic and financial buyers are actively seeking additional scale...