TORONTO, May 03, 2018 (GLOBE NEWSWIRE) -- Dr. Francis Dubé (“Dubé”) together with a group of concerned shareholders (the "Concerned Shareholders"), in their capacities as shareholders of Zenyatta Ventures Ltd. ("Zenyatta" or the "Corporation") announced today their continued disappointment with the Board’s use of the Corporation’s scarce financial resources by sending a letter to the Board of Directors of Zenyatta warning it against taking further actions that may destroy value and further entrench the Board.
Full text of the letter the Concerned Shareholders delivered to the Board:
May 3, 2018
Board of Directors
ZENYATTA VENTURES LTD.
1224 Amber Drive
Thunder Bay ON P7B 6M5
Attention: Keith Morrison, Executive Chairman
Dear Mr. Morrison:
On March 21, 2018 the Corporation called a special meeting of shareholders for May 11, 2018 (the “Special Meeting”) following a request from a group of concerned shareholders (the "Concerned Shareholders") of Zenyatta Ventures. The sole purpose of the Special Meeting is to replace certain incumbent directors with independent shareholder representatives.
The Corporation issued today a press release announcing the appointment of Mr. Paul Gardner as Chief Executive Officer and sole employee of Zenyatta’s wholly owned subsidiary, ZEN-tech Materials Limited (“ZEN-tech”). Mr. Gardner has no prior experience or relevant expertise in the resources or nanomaterial industries.
The Corporation previously issued a press release on April 17, 2018, announcing changes in executives roles with your appointment as Executive Chairman and the transition of Mr. Aubrey Eveleigh from President and CEO to President with a $900,000 severance payment over time and a new employment agreement for the same base salary of $225,000 that he was receiving as Chief Executive Officer.
Between now and the Special Meeting we strongly urge the Board and management not to engage in any activities, or take any action, that have the potential to further devalue our Corporation or be oppressive to its shareholders.
We insist the Board does not:
- Delay the Special Meeting
- Add new members to the Board or management prior to the Special Meeting
- Burden either Zenyatta or ZEN-tech with additional financial leverage
- Issue additional equity or engage in any other capital market transaction
- Approve any non-maintenance capital expenditures
The Concerned Shareholders are committed to improving value for all Zenyatta shareholders. We believe there is significant value in the business if capital allocation, expense management and execution issues are corrected. We believe an immediate reconstitution of the Board is required to ensure all future decisions place the interests of all shareholders and other stakeholders of Zenyatta first and foremost.
Sincerely,
Concerned Shareholders of Zenyatta
The ZEN forward Plan
The concerned shareholders encourage shareholders to vote using only the YELLOW proxy.
The Concerned Shareholders would like to thank all of the investors across Canada who support our vision to bring change to the Board and management of Zenyatta. For this change to happen, we need your votes. If you have not received the YELLOW proxy, we ask you to call your broker and ask for your “Opposed Control Number”. You should be getting a different number for each of your accounts. You then need to go to Proxyvote.com and follow the prompts. Every vote is important so please exercise your right to vote for change!
The Concerned Shareholders previously announced that they are proposing to elect Mr. Brian Bosse, Dubé, and Mr. Eric Wallman (the "Nominees") as directors of the Corporation, and are proposing to remove Mr. Aubrey Eveleigh, Mr. Barry Allan, Mr. Sean Whiteford, and Mr. Keith Morrison as directors of the Corporation. Each of the Nominees would serve as directors until the next annual meeting of shareholders of the Corporation, or until his successor is duly elected or appointed.
TO VOTE FOR CHANGE: DELIVER YOUR YELLOW PROXY TO SHORECREST GROUP PRIOR TO 5:00 P.M. (EDT) ON TUESDAY, MAY 8, 2018. Shareholders are urged to follow the instructions found on the YELLOW proxy or voting instruction form to ensure votes are received in a timely manner.
Shareholders are encouraged to read the letter to Shareholders and the Circular filed on SEDAR (at www.sedar.com) under Zenyatta’s profile, or visit the Concerned Shareholders' website at www.zenforward.ca.
Shareholder Questions
Shareholders who have questions or require assistance with voting may contact Shorecrest Group at:
Shorecrest Group Ltd.
Toll free in North America: 1-888-637-5789
Banks and Brokers and collect calls: 1-647-931-7454
Fax: 1-647-931-7349
Email: contact@shorecrestgroup.com
Disclaimers
The Concerned Shareholders have not sought or obtained consent from any third party to the use herein of previously published information. Any such information should not be viewed as indicating the support of such third party for the views expressed herein.
The head office of Zenyatta Ventures Ltd. is 1224 Amber Drive, Thunder Bay, ON P7B 6M5. A copy of this press release, as well as the Circular and the letter to Shareholders, may be obtained on Zenyatta’s SEDAR profile at www.sedar.com.
Except where otherwise stated herein, the statements contained in this press release are not made by or on behalf of the management of the Corporation but are made by or on behalf of the Concerned Shareholders. Information concerning the business of the Concerned Shareholders to be considered at the Meeting, including information relating to the Nominees, is contained in the Circular.
Except for the historical information contained herein, the matters addressed in these materials are forward-looking statements that involve certain risks and uncertainties. You should be aware that actual results could differ materially from those contained in the forward-looking statements. The Concerned Shareholders do not assume any obligation to update the forward-looking information, other than as required by applicable corporate or securities laws.
SOURCE: Concerned Shareholders of Zenyatta Ventures Ltd.
For further information, please visit www.zenforward.ca or contact:
- Christine Carson, email: ccarson@shorecrestgroup.com
- Francis Dubé, email: francis@zenforward.ca
- Eric Wallman, email: eric@zenforward.ca