VANCOUVER, Sept. 18, 2018 /CNW/ - Concerned
shareholders, Kulwant Malhi and
BullRun Capital Inc. (the "Concerned Shareholders") of
GrowMax Resources Corp. (the "Corporation" or
"GrowMax") (GRO:TSX.V) today announced the intention of
their board nominees (the "Concerned Shareholder Nominees")
to declare, if elected, a cash dividend in the amount of
$0.075 per share as part of their
plan to steer the Corporation in a direction that focuses on the
interests of shareholders of GrowMax ("Shareholders").
As Kulwant Malhi observed "the
Concerned Shareholder Nominees have experience building shareholder
value by creating world class publicly-traded companies. Recent
successes include the FOUNDING and development of Cannabix
Technologies Inc. (BLO:CSE), Patriot One Technologies Inc.
(PAT.V:TSX.V) and most recently Micron Waste Technologies Inc.
(MWM:CSE)".
The Dividend
Under the Concerned Shareholders' plan, all holders of GrowMax
Common Shares will receive a dividend payment estimated at
$0.075 per share (the
"Dividend"), subject to the availability of funds. The
Dividend would, subject to shareholder approval, be structured in a
tax efficient manner as a return of capital and reflects the
approximate current trading value of GrowMax common shares on the
TSX Venture Exchange.
The Concerned Shareholders believe that given the Corporation's
strong cash position, the Dividend provides an efficient means to
distribute a significant amount of cash on hand to Shareholders
while preserving sufficient financial resources and working capital
to pursue new business opportunities.
After the Dividend, shareholders will continue to own their
GrowMax shares and the Concerned Shareholders believe GrowMax will
have approximately $16 million in
cash. The Concerned Shareholders are committed to utilizing this
strong cash position to seek out investments and transactions that
are investor friendly and will actually maximize shareholder value,
instead of committing to the acquisition of PrimaSea Holdings and
its wholly-owned subsidiary Fertimar (the "PrimaSea
Acquisition") which will result in the ultimate depletion of
GrowMax's cash treasury. The amount of the Dividend will
ultimately be subject to the amount of available cash in Growmax
after the changeover of the Board at the shareholder meeting on
September 25, 2018.
Unlike the PrimaSea Acquisition, the Dividend will not result in
the handover of 50% of your company to PrimaSea's shareholders or
entrench control of the Corporation in GrowMax directors and
officers. Instead, the Dividend will allow Shareholders to continue
to meaningfully participate as shareholders in the Company with a
management team whose interests are aligned with ALL
shareholders.
Reminder to Vote
The Concerned Shareholders remind all Shareholders that the
proxy voting deadline is this Friday,
September 21, 2018. The deadline is fast approaching and
Shareholders are encouraged to vote today. More information is
available at www.laurelhill.ca/abetter-growmax. By voting only
the YELLOW proxy, shareholders will be voting:
- AGAINST a highly-dilutive transaction that will result
in the handover of nearly 60% of your company to GrowMax directors
and officers;
- AGAINST the re-election of a board of directors that has
destroyed shareholder value in favour of their own
self-interest;
- AGAINST the adoption of a new equity incentive plan that
will further increase the shareholdings of directors and officers
and further dilute your interest in the Corporation;
- AGAINST the adoption of an advance notice by-law that
gives the board of directors the sole discretion to dismiss your
shareholder nominees;
- FOR the new Concerned Shareholder nominees who will
rejuvenate the GrowMax board of directors and take the Corporation
in a new direction that will eliminate wasteful spending and
maximize shareholder value; and
- FOR the issuance of a dividend payment which will result
in a cash being paid directly to YOU instead of being used
to fund a money-losing operation.
Do not vote the blue proxy. Shareholders should
discard any blue proxy they may receive and should vote
only their YELLOW proxy well in advance of the proxy voting
deadline of September 21, 2018 at
8:00 a.m. Calgary time.
Due to the essence of time, Shareholders are asked to vote
online or by telephone by following the instructions found on the
YELLOW proxy to ensure votes are received in a timely manner. IF
YOU HAVE ALREADY VOTED USING MANAGEMENT'S BLUE PROXY, YOU CAN STILL
SUPPORT THE CONCERNED SHAREHOLDERS BY USING THE YELLOW PROXY. THE
LATER DATED PROXY WILL SUPERSEDE.
Remember every vote counts to protect your investment.
Regardless of the number of shares you own, please vote your
YELLOW proxy today.
Questions and requests for 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)
Email: assistance@laurelhill.com
SOURCE BullRun Capital Inc.
