FrontFour Capital Group LLC Announces Requisition of a Special Meeting of Renegade Shareholders, Demands Disclosure on Fees Paid to Insiders and Advisors
(firmenpresse) - GREENWICH, CONNECTICUT -- (Marketwired) -- 10/21/13 -- FrontFour Capital Group LLC ("FrontFour") announced today that FrontFour and a like-minded shareholder (the "Requisitionists") have served the Board of Renegade Petroleum Ltd. ("Renegade", or the "Company") with legal notice of their requisition of a special meeting of shareholders.
FrontFour recently sent a private proposal to the board of Renegade to replace a majority of current directors and work cooperatively to restore the Company's credibility. This proposal was rejected, prompting the Requisitionists to requisition a special meeting to enable shareholders to decide the matter directly. The Requisitionists believe that the current board is unqualified to make decisions related to board composition and the hiring of a new management team and is deeply concerned about the potential for another "Transformational" transaction which will enrich Renegade's advisors while further eroding shareholder value. In light of the conflict of interest that exists with its legal advisor and the sharp increase in general and administrative expenses, the Requisitionists have also demanded the disclosure of fees paid to the Company's legal and financial advisors, and that the Company disclose any financial arrangements with current directors that include payments of finder's fees or success fees.
Since the December 2012 closing of the so-called Transformational transaction and the conversion to a dividend-paying corporation, the share price has declined by 56% and, after announcing the Strategic Review, the share price continued to decline by 25% despite the iShares S&P TSX Energy Capped index increasing by 11% and 16% during the respective periods. Today, the Company's share price is close to its 3.5 year low.
FrontFour's retention of a leading petroleum consulting firm has confirmed its belief that Renegade has an attractive, high quality asset base, however, its shares trade at a significant discount to net asset value due to weak financial controls, poor governance, and a series of strategic missteps.
FrontFour believes that investors should note the following:
The Requisitionists collectively own or exercise control or direction over more than 5% of the outstanding shares of Renegade. They have requisitioned a special meeting of shareholders. In connection with the meeting, FrontFour intends to file an Information Circular which will include an alternative slate of directors.
"Renegade's board and its advisors continue to deplete the Company's cash resources while the shares remain near an all-time low," said Zachary George, Co-Founder and Managing Member of FrontFour. "It's time to get back to basics, focus on positive change, and re-establish Renegade's credibility."
About FrontFour Capital Group LLC:
Founded in 2006, FrontFour is an investment management company with offices in Greenwich, Connecticut and Toronto, Ontario.
The TSX Venture Exchange has not reviewed nor approved the contents of this press release and does not accept responsibility for the adequacy or accuracy of this press release. This news release is not a solicitation of a proxy.
Contacts:
FrontFour Capital Group LLC
Zachary George
(203) 274-9053
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Datum: 21.10.2013 - 12:00 Uhr
Sprache: Deutsch
News-ID 307506
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GREENWICH, CONNECTICUT
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Legal
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