NEWS...
STT Enviro to hold special shareholder meeting Oct. 22
2015-09-10 17:23 ET - News Release
Mr. David Deacon reports
STT ENVIRO CORP. ANNOUNCES SPECIAL MEETING IN ANTICIPATION OF IMPLEMENTING A DIVIDEND POLICY
Further to the notice of meeting and record date filed on SEDAR on Aug. 21, 2015, STT Enviro Corp. has confirmed that it will hold a special meeting of shareholders on Oct. 22, 2015, at 10 a.m., at the Holiday Inn Express and Suites, 2750 High Point Dr., Milton, Ont.
The purpose of the meeting is to put the company in a position to implement a dividend policy in the future. This is currently not permitted due to a technical provision under the Canada Business Corporations Act (CBCA), which prohibits the payment of dividends if, after paying dividends, the company's assets would be less than the sum of its liabilities and stated capital of all classes of shares. At the meeting, shareholders will be asked to approve a resolution to reduce the company's stated capital by an amount equal to the balance of the company's retained earnings deficit at Dec. 31, 2014. Approval of the resolution will reduce both the stated capital and deficit by the same amount, resulting in no change to total shareholder equity, and will bring the company into compliance with the CBCA provisions to permit it to pay dividends. There is no impact on taxes, cash flow or valuation of the company as a result of approving this resolution.
David E. Deacon, chief executive officer of STT, commented: "In the past few years, the company has proven its ability to consistently generate cash from operations. It has also completed an ambitious debt repayment plan. While the company intends to continue its growth plan through organic growth and accretive acquisitions, we believe that it is important that the company be in a position to implement a dividend policy. The resolution to be tabled at the Oct. 22, 2015, meeting puts the company in a position to do so when it feels it is appropriate. Shareholders are encouraged to vote in favour of the resolution to allow a dividend policy to be implemented in the future."
We seek Safe Harbor.