CALGARY, Dec. 16, 2014 /CNW/ - Robin L. Phinney, a founder and significant shareholder of Karnalyte Resources Inc. ("Karnalyte"), announced today that he has requisitioned a special meeting of the shareholders of Karnalyte pursuant to section 142 of the Business Corporations Act (Alberta) (the "Requisition") to remove four incumbent directors and to elect four new directors to the board of directors of Karnalyte. The Requisition was made by Mr. Phinney on his own behalf and on behalf of a group of concerned shareholders who have agreed to work together to evaluate and seek means to preserve and enhance shareholder value at Karnalyte (such shareholders, together with Mr. Phinney, referred to as the "Concerned Shareholder Group"). The Requisition requests that the requisitioned meeting occur by no later than February 13, 2015, or such other earliest practicable date, which provides the current board with ample time to call and hold a meeting.
Based on a review of public filings, Mr. Phinney is the second largest shareholder of Karnalyte with beneficial ownership or control of 4,012,409 common shares of Karnalyte, representing approximately 14.60% of the outstanding common shares of Karnalyte (based on a total of 27,479,010 common shares reported as outstanding in Karnalyte's most recent management discussion and analysis for the three and nine month period ended September 30, 2014). As of December 10, 2014, collectively, the Concerned Shareholder Group beneficially owned or had control or direction over approximately 22% of the outstanding common shares of Karnalyte.
While Mr. Phinney looks forward to engaging in constructive and meaningful dialogue with the current board of Karnalyte on behalf of the Concerned Shareholder Group, he believes that the requisitioned meeting is necessary to achieve the desired changes as quickly as possible in order to preserve and enhance shareholder value, while minimizing further erosion of shareholder value and disruption to Karnalyte.
Additional information, including information regarding the nominees of the Concerned Shareholder Group, will be contained in an information circular prepared by or on behalf of the Concerned Shareholder Group and mailed to Karnalyte shareholders in advance of the requisitioned meeting or as otherwise permitted by law. For further information regarding this news release, please contact Robin L. Phinney at +1 (403) 554‑8126.
This news release is for informational purposes only and is not a solicitation of proxies. Any proxies solicited by or on behalf of the Concerned Shareholder Group in connection with the requisitioned meeting will be solicited pursuant to an information circular or as otherwise permitted by law.
SOURCE: Concerned Shareholder Group of Karnalyte Resources Inc.