VANCOUVER , Feb. 27, 2019 /CNW/ - Concerned shareholders, Kulwant Malhi and BullRun Capital Inc. (the "Concerned Shareholders") of GrowMax Resources Corp. ("GrowMax") (GRO:TSX.V) are encouraged by the support they continue to receive from shareholders and are disappointed at management and the current board's persistence to distort information to try to garner votes.
The Concerned Shareholders believe the facts speak for themselves.
- Votes Cast Support the Concerned Shareholders. The YELLOW proxies and appointments collected to date show that shareholders support the Concerned Shareholders over management. Management continue to seek to entrench themselves and continue to act unethically to garner support. Why else would management and the current board go to all these lengths to postpone the meeting if they had the votes?
- Court Ruling. Don't be mislead by management. We encourage shareholders to read the truth of the Court decision, which can be found here.
Subsequent Ruling. The Honorable Madam Justice Ho ordered GrowMax to prepare a neutrally worded press release regarding her decision and provide it to counsel for the Concerned Shareholders for comment and agreement. An agreement could not be reached because management of GrowMax insisted on a one-sided version that distorted the result of the hearing. Ultimately, the Judge instructed GrowMax to issue the press release prepared by the Concerned Shareholders. That press release was issued by GrowMax on February 21, 2019 . Now, the subsequent misleading press release from GrowMax undermines the Judge's decision.
Independent Chair. The Court also ordered that an independent chair for the Meeting be installed. Among other responsibilities, we expect that the independent chair will set meeting protocol and rule on voting procedures. To date, neither management nor the board have taken any steps to initiate the process. The Concerned Shareholders hope to be able to work constructively with GrowMax to determine a mutually acceptable, qualified, and impartial chair.
- Dilutive Primasea Acquisition. Management continues to paint a picture that handing over more than 50% of Growmax to an entity, which has negative working capital, negative cash flow and unsustainable levels of debt, is a good thing. Shareholders know this is a raw deal and the votes show their distaste. Alarming information on the Primasea Acquisition can be found in the Concerned Shareholders' circular dated September 10, 2018 .
"We would like to thank fellow shareholders for their patience and continued support of our efforts to effect positive change. It has been a long journey filled with unnecessary delays and costs but we will endure to fight for the shareholders of GrowMax," said Mr. Malhi.
Mr. Malhi also added, "Management and the current board continue to use any tactic no matter how unethical, to keep itself entrenched to the detriment of shareholders. Their actions demonstrate IT IS TIME FOR CHANGE. Our proposed new board will bring the refreshment that is urgently needed."
As management and the current board see their support wane, the Concerned Shareholders urge them to act on their fiduciary duty - the shareholders have already spoken, no more delay tactics and wasting shareholder's investment. VOTE the YELLOW Proxy.
If you have already voted using the YELLOW Proxy to support positive change, there is no need to take further action. If you have not voted yet or wish to change your vote to support the Concerned Shareholders, simply vote online using the YELLOW Proxy. For voting assistance, Shareholders may contact Laurel Hill Advisory Group listed below.
Shareholders are invited to contact the Concerned Shareholders and their proxy solicitor at the coordinates below. Shareholders may also visit the Concerned Shareholders' website for updates at www.laurelhill.ca/abetter-growmax.
Questions and requests for voting assistance may be directed to the Concerned Shareholders' proxy solicitor:
Laurel Hill Advisory Group
North America Toll Free : 1-877-452-7184
Outside North America : 1-416-304-0211 (collect)
SOURCE BullRun Capital Inc.
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