VANCOUVER, March 5, 2019 /CNW/ - Concerned shareholders,
Kulwant Malhi and BullRun Capital
Inc. (the "Concerned Shareholders") of GrowMax Resources
Corp. ("GrowMax") (GRO:TSX.V) were disappointed by
management's delayed announcement to terminate the PrimaSea
acquisition despite knowing the votes in September. It was
clear shareholders were not supportive of the dilutive
transaction. Additionally, there are several outstanding questions
that management and the board have not addressed.
Gross Mismanagement of Treasury
The Concerned Shareholders question management and the board's
excessive use of funds with no plan to move GrowMax forward.
The Concerned Shareholders were alarmed to learn from one of
management's many press releases, that cash on hand had dwindled
from over $43 million in January 2018 to $25
million, representing a destruction of $0.08 cash per share in shareholder value. This
gross mismanagement of funds only reinforces the need for immediate
change.
Loan Repayment
Management and the board have not indicated whether Growmax has
given formal notice requesting repayment of the $1.8M loan that was approved by the board on
August 11, 2018. In the interest of
shareholder transparency, the Concerned Shareholders request that
management comment on the likelihood of repayment of the loan,
which was guaranteed by GrowMax, given that the intent of the loan
was for funding of CAPEX of Fertimar's assets and operations.
Potential Break Fees
The Concerned Shareholders seek clarification on whether there
are other break fees or costs the company has been burdened with.
To this point, management and the board have not indicated whether
termination of the PrimaSea acquisition resulted in a break fee, or
other associated costs, and if payment has been made.
Resignation of Director
No explanation was provided as to why John Van Brunt, a current director of GrowMax
and a nominee on management's slate, suddenly resigned just three
days before the shareholder meeting.
Vote for a Board that Will Deliver
The vote to decide the future of GrowMax is being made
now. The Concerned Shareholders encourage the Board to ensure
that, despite management's indecisiveness, the annual meeting
proceed as scheduled on March 8,
2019. The Concerned Shareholders believe passionately that a
bright future for GrowMax can be achieved under the qualified,
independent and motivated leadership of the Concerned Shareholders'
nominees who are better aligned with the Shareholders' interests.
Together, Bullrun Capital and Kulwant
Malhi are one of the largest shareholders of GrowMax and
have a vested interest to generate shareholder value for all
shareholders.
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
Alfred
Wong
President
Bullrun Capital Inc.
Suite 915-700 West Pender Street
Vancouver, BC V6C 1G8
+1 604 398 4013
www.bullruncapital.ca
SOURCE BullRun Capital Inc.