Karnalyte Resources Inc T.KRN

The corporate gloves are definitely off for this tussle

[mdjbrown]

 Taken directly from the Management Information Circular released publicly on SEDAR by Krn this afternoon:

"REASONS TO WITHHOLD FROM THE DISSIDENT DIRECTOR NOMINEES

1. The Dissidents Have a History of Unethical Behaviour and Putting Their Own Interests Ahead of All Shareholders. The Dissident Interests Are Not Aligned with Those of Other Shareholders

 
The Dissidents were previously Directors of Karnalyte but resigned from the Board after being found in breach of their fiduciary duties and Karnalyte’s Code of Conduct
 
Per the Dissidents’ July 7, 2020 press release, “In early 2019, the [Dissidents] found themselves offside Karnalyte’s Code of Conduct, took responsibility for their actions, and resigned from the Board as the appropriate and ethical course of action.”
 
While the Dissidents glossed over the seriousness of the breaches and simply referred to being “offside”, there were in fact significant breaches of the Company’s Code of Conduct, including disclosure of Karnalyte corporate documents and confidential/sensitive Karnalyte corporate information.
 
Prior to the breaches, the Dissidents were elected to the Board, which included a current Dissident nominee, Todd Rowan. What followed was depletion of the Company’s limited cash resources, poor performance, and unacceptable governance practices, including serious breaches of confidentiality and a failure to move the Company forwardin any meaningful way—including a repeated failure to meet the Nitrogen Project milestones they themselves set.
 
Now the Dissidents, who demonstrated a lack of concern for governance and ethical behaviour in the past, are agitating for change and feigning concern under the guise of “concerned shareholders.” This group’s previous behaviour (and even their conduct during their current ill-timed campaign to take control of Karnalyte) suggests that they are not capable of professional, responsible stewardship that would be in the best interests of all shareholders.
 
In their series of accusations against the Company, the Dissidents have also questioned the expertise of independent professional advisory firms and regulatory bodies. When the Dissidents fail in achieving their desired results, they have not hesitated to question the competence and professionalism of those who disagree with them or have not done their bidding. The challenge the Dissidents face is that Karnalyte shareholders have shown themselves to be engaged and sophisticated. They have seen far too much disruption and conflict at the Company and by now, have developed a keen ability to sense when there is real risk to their investment. Given their actions, it strains credulity for the Dissidents to claim that their interests are aligned with those of the other shareholders. Shareholders of a company invest in it to see it succeed and create value. In pursuit of their own agenda, the Dissidents are disregarding the consequential impairment and destruction of shareholder value.
 
To repeatedly and baselessly attack the Interim CEO, whose actions since joining the Company in late 2015 have been beyond reproach, suggests a personal animosity that falls well beyond the pale of what one might expect from “concerned shareholders” who are genuinely interested in what is best for the Company.