Post by
mdjbrown on Jun 21, 2021 1:38pm
Shareholders just want the truth!
For many years shareholders have had concerns that GSFC has been calling the managerial shots for Krn since arriving on the scene in 2013.
If there is any truth to these concerns, shareholders need to know, as we all invested in Karnalyte Resources not GSFC, and it is clear GSFC now controls not only election voting but also boardroom voting.
GSFC is a shareholder of Karnalyte shares. Nothing more, nothing less.
If Karnalyte can not move in any direction without the consent of GSFC, that is a problem and that has never been more evident than after carefully reading the January 28, 2021 Affidavit of a past CEO of the company.
It is very concerning as a Karnalyte shareholder when I read the folowing publicly available comments made by a former President / CEO of Karnalyte Resources:
"The Nitrogen Project was Rowan's idea. I took Rowan's idea, conducted fatal flaw analysis, created a corporate strategy, a complete development program, including work programs, milestones and budgets to pursue the Nitrogen Project, and presented it to KRN Board for approval. Once approved, the strategy was released to the Canadian Capital Markets."
"I recieved an unsolicited inquiry from a large, private Canadian agriculture company (AgCo) expressing a serious interest in participating in the Nitrogen Project."
" During 2018 and 2019, I developed a comprehensive set of project site selection criteria for the Nitrogen Project, visited numerous potential sites, and discussed potential sites with AgCo."
" In early 2019, I had identified a suitable site and proposed its aquisition to the KRN Board. The KRN Board, lead by Varma, refused to allow the acquisition to proceed."
" By September 2019, with the help of the landman from AgCo, I had identified and negotiated an agreement to acquire a preferred project site, located near Saskatoon, which the AgCo fully supported."
" I presented the proposed agreement to acquire the Nitrogen Site to the KRN Board and Varma refused to consider the matter."
"In February 2019, I arranged an in person meeting between ...... Varma, myself, and the CEO of the AgCo"
"The purpose of the meeting was for the GSFC nominees to meet the CEO and management of the AgCo, and vice versa, given both parties might be working together on the Nitrogen Project.
"Varma told the CEO of AgCo that GSFC was in Canada only for potash, wasnt really interested in nitrogen fertilizer, ..."
"I recommended KRN undertake the Rights offering"
"I determined the use of proceeds for the Rights offering. The intent and purpose of the Rights offering was to provide funding for the Nitrogen Project, so as not to have to use the existing $9 million in cash. The purpose of the Rights offering was not to provide additional funds for the Potash Project, or general and administrative expenses. KRN had sufficient cash resources to fund its annual costs, and did not need the proceeds from the Rights offering to fund such costs."
"In August 2019, in a Memorandum to the KRN Board, I specifically warned the KRN Board that, given it had been almost 9 months since the Rights offering had closed, and the Krn Board had not authorized the expenditure of virtually any monies from the Rights offering to be expended on the Nitrogen Project, there was a risk that KRN and the KRN Board could face legal action for misrepresentation."