TORONTO, Jan. 12 /CNW/ - Geosam Investments Limited ("Geosam") announces that it has withdrawn its requisition for a special meeting of shareholders of Cordy Oilfield Services Inc. ("Cordy"). Geosam and another shareholder requisitioned the directors of Cordy to call a special meeting of shareholders on November 27th, 2009.
Regrettably, Geosam's application to the British Columbia Securities Commission (the "BCSC") to recover its legal costs associated with challenging the private placement was recently denied on the grounds that the BCSC did not have the jurisdiction to award costs where a shareholder challenges the decision of an exchange. It is unfortunate that British Columbia securities legislation does not provide its regulator with the power to award costs in this situation as a cost award would have acted to (i) deter public companies from inappropriate decision making vis-à-vis minority shareholders, and (ii) encourage minority shareholders to challenge decisions made by public companies without regard for their interests. Geosam announced its application to the BCSC on December 1st, 2009. Given the ruling by the BCSC and the relative value of Geosam's investment in Cordy, we have decided to withdraw our requisition.
Notwithstanding the decision to withdraw our requisition, we are very pleased that our efforts led to the termination of Cordy's private placement, which so clearly favoured the interests of certain insiders to the detriment of all other shareholders. We are hopeful that as a result of the recent events surrounding the private placement and its subsequent termination, Cordy's leadership will be less likely to undertake transactions that ignore the interests of minority shareholders. Geosam continues to believe in the value of the company's assets and its business and remains hopeful that Cordy's board of directors will bring in the independent leadership that the company so clearly needs to unlock its potential.
Cautionary Information regarding forward-looking statements:
Statements about the intentions of Geosam and the anticipated future reputation and success of Cordy and all other statements in this release other than historical facts constitute forward-looking statements. The statements are not a guarantee as to future performance and involve risks and uncertainties that are difficult to predict. The statements are based upon Geosam's current expectations and beliefs and are subject to a number of known and unknown risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Geosam disclaims any obligation to update or revise forward-looking information in this news release based on new information or otherwise, unless expressly required by law.
SOURCE GEOSAM INVESTMENTS LIMITED
For further information: For further information: Garen Mikirditsian, Investment Manager, Geosam Investments Limited, (416) 855-1928