CALGARY, Dec. 10, 2014 /CNW/ - Robin L. Phinney, a founder and significant shareholder of Karnalyte Resources Inc. ("Karnalyte"), as well as the former President, CEO and director of Karnalyte, has today filed an early warning report in respect of an understanding reached among concerned shareholders of Karnalyte 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").
Mr. Phinney beneficially owns an aggregate 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).
Collectively, the Concerned Shareholder Group beneficially owns an aggregate of 6,089,634 common shares of Karnalyte, representing approximately 22.16% of the outstanding common shares of Karnalyte.
Mr. Phinney intends to initiate or participate, together with the other members of the Concerned Shareholder Group, all actions as they consider necessary or advisable to preserve and enhance shareholder value at Karnalyte and to protect their investment and that of Karnalyte's other long-term shareholders.
Norton Rose Fulbright Canada LLP has been retained to act as counsel to Mr. Phinney.
This news release is issued pursuant to the early warning requirements under applicable Canadian securities laws. A copy of the early warning report to which this news relates will be available under Karnalyte's SEDAR profile at www.sedar.com. The Concerned Shareholder Group is comprised of Mr. Phinney, Henry Kerkhoven, Peter Matson, Dan Brown, Sokuen Sue Ng, Podolski Andrzej, Tom Phinney & Connie Phinney, William Todd Rowan, Wain Peters & Joanne Peters, Herman Phinney & Ellen Phinney, Mark Zachanowich, Bradford A. Suter, Nancy Phinney & Stan Phinney, Lasha Consulting Services Inc., Reddick Contractors Ltd., Norman Wallace Rayner & Lesley Georgina Rayner, Wayne Smith & Edith Smith and Joe Novecosky.
SOURCE: Concerned Shareholder Group of Karnalyte Resources Inc.
For further information: including to obtain a copy of the early warning report filed in connection with this news release, please contact Robin L. Phinney at +1 (403) 554-8126.