TORONTO, Dec. 1 /CNW/ - Geosam Investments Limited ("Geosam") announces that on November 27, 2009, Geosam and another shareholder holding in the aggregate more than 5% of the shares of Cordy Oilfield Services Inc. ("Cordy") requisitioned the directors of Cordy to call a special meeting of shareholders for the purposes of:
- considering the removal of David Mullen, Kevin Mullen and Steve Mallett
as directors of Cordy; and
- considering the election of four independent directors (at present
there is one vacancy on Cordy's board).
Cordy directors are required, as a result of our requisition, to call the special meeting of shareholders within 21 days of the receipt of the requisition, failing which we intend to proceed to call the meeting ourselves. Geosam will announce its proposed slate of directors in the near term which will be comprised of independent directors with relevant expertise.
In recent months, many shareholders, including Geosam, lost faith in the ability of Cordy's leadership to act in the best interest of all shareholders and the company in general. Our views were reinforced by the highly dilutive private placement launched by Cordy on October 1, 2009 (the "Private Placement"), which clearly favoured the interests of certain insiders to the detriment of all other shareholders. Geosam was deeply concerned with the company's treatment of minority shareholders, like itself, and accordingly challenged the Private Placement via an application to the British Columbia Securities Commission ("BCSC"). While Geosam is pleased that, in response to its challenge, Cordy withdrew the Private Placement, it is clear that new leadership is imperative.
Our goal is to act as a catalyst for change and create an opportunity for all shareholders to voice their concerns as well as to reconstitute the board of Cordy with independent leadership; a change which we believe will allow Cordy to regain the trust and confidence of the capital markets and position the company for future success.
Geosam also announces that it has applied to the BCSC to recover its legal costs associated with challenging the Private Placement. We have incurred considerable legal costs to date, costs which would have been unnecessary had Cordy leadership not moved ahead with its ill-advised Private Placement. Geosam is of the view that this is a highly important application as a cost award would act to (i) deter public companies from making inappropriate decisions vis-à-vis minority shareholders, and (ii) encourage minority shareholders to challenge decisions made by public companies without regard for minority interests. We look forward to our application being heard by the BCSC on December 7, 2009.
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