HALIFAX, April 21, 2014 /CNW/ - The Concerned Shareholders of Sherritt International Corporation ("Sherritt") today provided fellow shareholders with a comprehensive presentation describing the reasons to support their nominees to the Board of Directors and their four Shareholder Proposals at Sherritt's Annual and Special Meeting to be held on May 6, 2014.
The presentation is available at the Concerned Shareholders' website www.SaveOurSherritt.com and reminds Sherritt investors to vote the GREEN proxy for positive change at the Company.
The shareholder presentation notes that Sherritt's Board needs true shareholder representation to align the interests of the Board and management with the interests of shareholders.
Sherritt's Board owns less than 0.25% of the Company's shares and pays itself an average of $362,000 for each current director, largely in cash. With no incentive to create shareholder value, the result has been that Sherritt's return, with dividends reinvested, was a loss of 55% for the three years prior to the Concerned Shareholders filing the requisition for a special meeting.
The Board of Sherritt appointed an inexperienced and unqualified CEO in January 2012 and has paid him more than $5 million since then, despite the Company's rising costs, decline in EBITDA, falling share price and a credit rating review which may result in a downgrade.
The presentation points out that Sherritt has not allocated capital effectively, resulting in $717 million, or $2.41 per share, in write-offs the past five years, and it has made no effort to control overhead and operating costs which continued to rise in 2013.
It also reminds shareholders that Sherritt's Board was taking no meaningful positive action until the Concerned Shareholders submitted their requisition and that it has since taken credit for steps previously recommended by the Concerned Shareholders, who have created more value at Sherritt in four months than the Board has in four years.
The Concerned Shareholders presentation provides details of their three experienced and highly qualified nominees to the Board and the value-creating steps its nominees would recommend to the majority of the Board after election.
The complete Concerned Shareholders Information Circular can also be downloaded at www.SaveOurSherritt.com and www.sedar.com.
Sherritt shareholders are advised to vote using the GREEN form of proxy that accompanies the Concerned Shareholders' Circular. They should disregard any proxy sent by Sherritt management and, even if they have voted a blue management proxy, they have the right to change their vote using a later-dated GREEN proxy. Only the last-dated proxy is counted.
In order for the GREEN proxy to be counted, it must be submitted consistent with the instructions on the proxy and must be received no later than 5:00 p.m. Toronto time on Thursday May 1, 2014.
Discard the blue proxy. Vote only the GREEN proxy for positive change at Sherritt.
Sherritt shareholders with questions can call 1-800-294-3174 or visit our website at www.SaveOurSherritt.com for more information.
About the Concerned Shareholders of Sherritt
Members of the Concerned Shareholders of Sherritt have been investors in the Company since May 2011. They are led by Halifax-based Clarke Inc. which invests in a variety of private and publicly-traded businesses and participates actively where necessary to enhance performance and increase the return to shareholders. Clarke's securities trade on the Toronto Stock Exchange (CKI; CKI.DB.A); for more information about Clarke, please visit the website at www.clarkeinc.com.
Statements Regarding Forward-Looking Information
This news release may contain forward-looking statements or forward-looking information within the meaning of applicable securities laws, including, without limitation, in respect of Clarke's and Sherritt's priorities, plans and strategies for Sherritt and Sherritt's anticipated financial and operating performance and prospects. All statements and information, other than statements of historical fact, included or incorporated by reference into this Circular are forward-looking statements and forward-looking information, including, without limitation, statements regarding activities, events or developments that Clarke expects or anticipates may occur in the future. Such forward-looking statements and information can be identified by the use of forward-looking words such as "will", "expect", "intend", "plan", "estimate", "anticipate", "believe" or "continue" or similar words and expressions or the negative thereof.
We caution readers of this news release not to place undue reliance on forward-looking statements and information contained in the news release, which are not a guarantee of performance, events or results and are subject to a number of risks, uncertainties and other factors that could cause actual performance, events or results to differ materially from those expressed or implied by such forward-looking statements or information. Sherritt's shareholders are cautioned that all forward-looking statements and information involve risks and uncertainties, including those risks and uncertainties detailed in Sherritt's continuous disclosure and other filings with applicable Canadian securities regulatory authorities, copies of which are available on SEDAR at www.sedar.com. We urge you to carefully consider those factors.
The forward-looking statements and information contained in this news release are expressly qualified in their entirety by this cautionary statement. The forward-looking statements and information included in this news release are made as of the date hereof and Clarke undertakes no obligation to publicly update such forward-looking statements or information to reflect new information, subsequent events or otherwise, except as required by applicable laws.
Sherritt has announced that it will hold its annual meeting of shareholders on May 6, 2014. The Concerned Shareholders' nominees will be considered for election at that meeting. The Concerned Shareholders filed a Circular on April 9, 2014, together with a GREEN proxy or voting instruction form. SHAREHOLDERS OF SHERRITT ARE URGED TO READ THE CIRCULAR CAREFULLY BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION. Investors and shareholders will be able to obtain free copies of the Circular and any amendments or supplements thereto and further proxy circulars at no charge on SEDAR at www.sedar.com. In addition, shareholders will also be able to obtain free copies of the proxy circular and other relevant documents by calling the Concerned Shareholders' proxy solicitor, CST Phoenix Advisors at 1-800-294-3174.
SOURCE: Clarke Inc.
For further information: Shareholders, Susy Monteiro, CST Phoenix Advisors, 1-866-822-1237, 647-351-3085, email@example.com; Dustin Haw, Vice President, Investments, Clarke Inc., 416.855.1928, 416.930.1982, firstname.lastname@example.org; Media, John Lute, Lute & Company, 416-929-5883, email@example.com