RE:Karnalyte receives vote-against recommendation from ISS Karnalyte receives vote-against recommendation from ISS
2020-12-09 12:14 ET - News Release
Ms. Danielle Favreau reports
LEADING INDEPENDENT PROXY ADVISORY FIRM ISS RECOMMENDS SHAREHOLDERS VOTE AGAINST THE REMOVAL OF CURRENT DIRECTORS, WITHHOLD FROM VOTING FOR DISSIDENT NOMINEES
Karnalyte Resources Inc. has noted that leading independent proxy advisory firm Institutional Shareholder Services Inc. recommends that Karnalyte shareholders vote against the removal of current directors and withhold from voting for the slate of dissident nominees in relation to the company's upcoming special meeting of shareholders.
In making its recommendation, ISS carefully and independently reviewed the arguments made by both sides. In making its recommendation, ISS stated: "The dissident has failed to make a compelling case that a change in board control is warranted...As such, shareholders are advised to vote AGAINST the removal of the current directors and to vote WITHHOLD for the slate of dissident nominees."
"The voting recommendations from ISS against the removal of the current Board and to withhold from the Dissident's nominees reinforces that changes to our board are not warranted and that it is in Karnalyte's best interest to move ahead with its existing board members," said Danielle Favreau, Karnalyte's Interim CEO. "Time is short. In order to ensure that your votes are received in time to be counted at the Meeting, shareholders should vote immediately and as recommended by our Board and ISS to put this matter behind us."
VOTE YOUR BLUE MANAGEMENT PROXY FORM TODAY
Karnalyte's Board unanimously recommends that shareholders vote as follows using only the BLUE MANAGMENT PROXY FORM:
- AGAINST the Directors Removal Resolution;
- WITHHOLD from the Dissident Director Nominees (as described in the Management Information Circular).
The Special Meeting of Shareholders is scheduled for Tuesday, December 15, 2020 but given the COVID-19 pandemic, shareholders are strongly encouraged not to attend the meeting in person. Instead, in order to ensure your vote is counted, shareholders are urged to vote in advance and ensure that your vote is received prior to the proxy voting deadline of Friday, December 11, 2020 at 9:30 a.m. (Saskatoon Time). For more information, please refer to the management information circular filed on the Company's profile on the SEDAR website (www.sedar.com).
About Karnalyte Resources Inc.
Karnalyte Resources Inc. is a development stage company focused on two fertilizer products, potash and nitrogen, to be produced and manufactured in Saskatchewan. Karnalyte owns the construction ready Wynyard Potash Project, with planned phase 1 production of 625,000 tonnes per year ("TPY") of high grade granular potash, and two subsequent phases of 750,000 TPY each, taking total production up to 2.125 million TPY. Karnalyte is also exploring the development of the Proteos Nitrogen Project, which is a proposed small-scale nitrogen fertilizer plant with a nameplate production capacity of approximately 700 metric tonnes per day ("MTPD") of ammonia and approximately 1,200 MTPD of urea, and a target customer market of independent fertilizer wholesalers in Central Saskatchewan.
About ISS
ISS is a leading provider of corporate governance offerings including objective governance research and recommendations, and end-to-end proxy voting and distribution solutions. Institutional clients rely on ISS for their corporate governance views, to identify environmental, social and governance risk, and to manage their complete proxy voting needs on a global basis. ISS covers approximately 44,000 meetings in 115 markets yearly, delivering proxy research and vote recommendations while working closely with clients to execute more than 10.2 million ballots representing 4.2 trillion shares.
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