I'm sad to see that no one on the thread appears to know how to read.
If you review the news which was graciously re-posted by Winer, I believe their are some things people seem to be over looking on the proxy contest. Let me clarify.
Firstly, the CSG's meeting announcement did not expressly claim that they had the support of Pallaum (or Globenet or Donner for that Matter). All they said was they met to discuss the future of the project, which I believe is prudent, because if they win, like it or not, Pallaum, Glibenet and Donner will be dealing with the new slate.
Notice from Pallaum's release, they claim to have "NO DIRECT INTEREST in the current proxy campaign for control of LAB". They did not however, deny having an INDORECT INTEREST behind the scenes. They claim they simply want to maintain a "posative working relationship with our (their) joint venture partners and contractors". They don't specify which partners.
While some of you think Pallaum's statement transltes to support for LAB management, I don't agree. They simply chose to ride the fence in the fight. They took exception to the CSG's reported agenda at the meeting, nothing else. THEY DID NOT SAY WHO THEY DO OR DO NOT SUPPORT.
Secondly, LAB's last news release shows that they are ticked because they weren't invited to the meeting. Notice however that they don't attack Pallaum or Globenet for attending (thier actual PARTNERS in the deal, they spend all of their time attacking DONNER for attending. They seem to be concerned only that Donner may have given them information on the project which may be subject to "confidentialy" or "disclosure" issues. How come they don't care if Pallaum or Globenet said anything which may be subject to "confidentiality" or "disclosure "issues". Presumably they would have the same info on the properties as LAB.
Is someone hiding something?
Finally, did anyone else catch the latest news from the CSG:
Friday July 10, 11:28 pm Eastern Time
Labrador International Mining Ltd. Management Claims
They Own Over 19% of the Outstanding Shares, But
2,247,763 Shares or 17.69% Are "Escrow Shares"
VANCOUVER, British Columbia--(BUSINESS WIRE)--July 10, 1998--The Concerned Stakeholder Group of Labrador International Mining Ltd. has just obtained a copy of Management's undated Letter to Shareholders, which is being distributed to the Company's investors.
Management's Letter to Shareholders makes these statements on the first page:
"Current Management holds 2,427,738 common shares in the Company, as clearly disclosed in Management's Information Circular dated June 18, 1998. Our commitment to shareholder value is clear."
"Current Management are totally committed to maximizing the long-term value of every shareholder's investment in your Company. We own over 19% of the shares ourselves. We reorganized the Company from an unsuccessful computer accessory distribution company and acquired the properties in South Voisey's Bay as a foundation for the Company as it exists today."
Management's statements about their share ownership do not tell the whole story
Current Management's Letter to Shareholders claims holding 2,427,738 shares demonstrates their "commitment to shareholder value." Management's Letter does not reveal to shareholders that 92.58% or 2,247,763 of their shares are Escrowed Performance Shares carried over into Labrador International Mining from the "unsuccessful" computer accessory company.
Footnote D to Note 6 on page 11 of the Labrador International Mining Ltd. Audited Consolidated Financial Statements for the year ended January 31, 1998 discloses the following:
"Shares held in escrow
(i) By an escrow agreement dated for reference on March 23, 1993 between the Company, Stephen Kucklinca as principals and Pacific Corporate Trust, 2,168,075 common shares are
held in escrow and will be released when certain cash flow conditions are met.
(ii)By an escrow agreement dated for reference on March 23, 1993 between the Company,Michael Cartmel and Pacific Corporate Trust, 76,688 common shares are held in escrow and
will be released when certain cash flow conditions are met."
Vancouver Stock Exchange Policy 19.7.6 requires that all escrow agreements must provide "that the holders of Performance Shares waive any rights attached to those shares to receive dividends or to participate in the assets and property of the listed company on a winding up or dissolution. Holders of Performance Shares do retain the rights to vote those shares, except on a resolution respecting their cancellation."
We believe the 2,247,763 Escrow Shares were issued in March 1993 during the formation of the computer accessory distribution company which Management admits was "unsuccessful". For reasons unknown to us, the Escrow Shares, have remained outstanding following the reorganization of the corporation into Labrador International Mining Ltd. in August 1995. The Company's financial statements say the shares "will be released when certain cash flow conditions are met." We
understand that the Escrow Shares will expire in 2003, unless the shareholders approve a resolution earlier canceling the shares.
Current Management has entrenched themselves by voting their Escrow Shares
Although the Escrow Shares do not have most of the normal rights of common stock ownership, they do bestow upon their holders voting rights which have proved to be of great benefit to current
Management.
Because of the traditionally low voter response at annual and extraordinary meeting of shareholders (normally less than 30% of the shares outstanding), current Management's voting power over 17.69% of the outstanding shares enables them to entrench themselves in control, reprice their stock options and approve rollbacks with little regard for the wishes of the majority of the Company's shareholders who have bought and paid for their shares in the open marketplace.
Management's voting control is even further enhanced when they fail to distribute shareholder meeting materials and proxies to over 550 beneficial owners of approximately 25% of the Company's outstanding common stock who hold their shares in U.S. brokerage firms and banks,
which we understand has been the practice of current Management in recent years.
The Concerned Stakeholder Group is proposing an alternate slate of five nominees for election to the Board of Directors at Labrador International Mining's Annual General Meeting of Shareholders
scheduled to be held at 10:00 a.m. on Thursday July 23, 1998 in Vancouver, Canada.
THE VANCOUVER STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT
ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS
RELEASE.
Editor's Note: A 52-week stock price chart for Labrador International Mining Ltd., courtesy of Canada-Stockwatch is available on the Internet at URL:http://chart.canada-stockwatch.com/sw/chart.dbm?symbol=LAB.
Contact:
Allen Nelson & Co.
Allen Nelson, 206/938-5783
Once again, management looks bad, very bad
Roger D |
