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.
The Facts
- 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.
Vote Today
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.
More Information
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)
Email: assistance@laurelhill.com
SOURCE BullRun Capital Inc.