- Reminds shareholders of upcoming proxy deadline of Tuesday October 31st at 5:00pm (PDT)
- Urges shareholders to vote their BLUE proxy in favour of five experienced nominees
- Confirms he will personally bear all his costs on the proxy fight and challenges Greg Sunell to do the same
VANCOUVER, Oct. 26, 2017 /CNW/ - Daniel Russell and the Concerned Shareholders of Synex International Inc. (TSX:SXI) ("Synex" or the "Company") reminds shareholders to vote their BLUE proxy before Tuesday October 31st at 5:00 P.M. (Pacific Daylight Time) and issues a challenge to Greg Sunell.
Daniel Russell and the Concerned Shareholders of Synex wish to thank the many shareholders that have already voted their BLUE proxy for a new, invigorated and highly qualified board that is focused on you, the shareholder, and on harnessing the potential of Synex. Having spoken with many shareholders in the past month, we are aware that some feel so disenfranchised by the current board and management that they are considering simply abstaining from voting. As the largest shareholder of Synex, Mr. Russell shares your frustration but urges you to be part of the solution. Abstaining from voting risks continued stagnation of your investment.
Only by voting the BLUE proxy can you bring new talent, energy and focus to the Synex board.
Over the course of many conversations with shareholders, the question continues to be raised of how we got to this point. The answer is painfully simple.
- As part of discussions around the most recent equity financing, Mr. Russell asked for some due diligence to be completed on the third party making the investment proposal and for a detailed accounting disclosure of how money has been spent. Mr. Russell has willingly participated in every financing round for many years and it is a reasonable question for any investor to request details on how money is being spent and a duty as a director to know who you are doing business with.
- The reaction of Greg Sunell and his allied board associates was to remove Mr. Russell as a board nominee for this meeting. Moreover, these are the events that the incumbents portray as Mr. Russell "being obstructive".
- Mr. Russell did not want this costly and distracting fight but in order to protect his investment – and yours – was forced to put together an alternate board focused on running Synex in a transparent, professional manner in stark contrast to the recoil shown by the incumbents at the first hint of reasonable scrutiny.
The current management and board's campaign has been built around suggestion and innuendo and not on fact. They have suggested, without basis, that Mr. Russell has a hidden agenda for personal enrichment that will drive costs up.
Mr. Russell issued the following response: "For the record, my plan is to be laser-focused with shareholder capital and to only spend on those things that are necessary or drive shareholder value. I have spoken with shareholders who are concerned about the cost of this contested board election. While it is industry standard practice for a dissident to recover their costs on success, I want to publicly show that my incentive is solely on doing what is right for all shareholders. I will bear all the costs associated with bringing much needed change to the board of Synex and I challenge Greg Sunell, as the second largest shareholder to do the same. Greg, if you are in this for the benefit of shareholders then stop spending shareholders' money and make the same personal commitment to fund your own defence."
Synex is at a cross roads and shareholders have a clear choice.
A vote on the BLUE Proxy is a vote for change in the way Synex is run and particularly in its board oversight. A new board that puts shareholders and employees first.
A vote on the WHITE proxy is acceptance of continued under-performance and acknowledgement that any reasonable level of scrutiny will be rejected.
If you have already voted on the white proxy you can still change your vote at any time up until the proxy cut-off by voting again on the BLUE proxy. Your latest dated proxy is the vote that will count.
YOUR VOTE IS IMPORTANT REGARDLESS OF THE NUMBER OF SHARES YOU OWN. PLEASE VOTE TODAY.
If you have questions or need help voting their shares call Kingsdale Advisors at 1-866-581-0507 or 1-416-867-2272 outside of North America or email [email protected].
Daniel Russell has retained Dentons Canada LLP as legal counsel, and Kingsdale Advisors as his strategic shareholder advisor and proxy solicitation agent.
This press release contains forward-looking statements. All statements that are not clearly historical in nature or that necessarily depend on future events are forward-looking, and the words "anticipate," "believe," "expect," "estimate," "plan," and similar expressions are generally intended to identify forward-looking statements. These statements are based on current expectations of the Concerned Shareholders and currently available information. They are not guarantees of future performance, involve certain risks and uncertainties that are difficult to predict, and are based upon assumptions as to future events that may not prove to be accurate. The Concerned Shareholders do not assume any obligation to update any forward-looking statements contained in this press release, except as required by applicable law. Please refer to the Concerned Shareholders' circular for further information regarding the risks of these statements.
Except where otherwise stated herein, the statements contained in this press release are not made by or on behalf of the management of the Company but are made by or on behalf of the Concerned Shareholders.
A copy of this press release may be obtained on the Company's SEDAR profile at www.sedar.com.
SOURCE Daniel Russell
For further information: Ian Robertson, Executive Vice President, Communication Strategy, Kingsdale Advisors, Direct: 416-867-2333, Cell: 647-621-2646, Email: [email protected]