Activist Investor May Seek Control of Liquor Stores' BoardLiquor Stores N.A. Ltd. Warns Shareholders: An Activist Investor May Seek Control of Liquor Stores' Board at the AGM Files Management Information Circular Recommends that Shareholders Vote for the Board's Nominees EDMONTON, ALBERTA--(Marketwired - May 10, 2017) - Liquor Stores N.A. Ltd. (the "Company" or "Liquor Stores") (TSX:LIQ), North America's largest publicly traded liquor retailer, today warned shareholders that an activist shareholder, PointNorth Capital Inc. of Toronto ("PointNorth" or "the activist"), may seek control of Liquor Stores' Board at the forthcoming Annual General Meeting (the "Meeting"). Last November, PointNorth announced that it had acquired approximately 9.9% of Liquor Stores' shares. The Company has engaged proactively with PointNorth over the past six months through multiple calls, meetings, store tours and exchanges of letters with John Bitove, Phil Evershed and other representatives of the activist. In the spirit of constructive engagement, and out of a desire to avoid a costly and distracting proxy battle, Liquor Stores offered to appoint or nominate two of PointNorth's proposed nominees to the board of directors, subject to adherence with good governance practices. PointNorth rejected Liquor Stores offer of two board seats point blank. Instead, PointNorth demanded that Liquor Stores cede control of the Board to unnamed candidates that it would nominate. PointNorth has also openly admitted that it did not have an alternative strategy for the Company and believes management is doing all the right things. Jim Dinning, Chair of the Board of Liquor Stores said, "The Board is confident in Liquor Stores' strategy and the strength of our management team. And despite the record unemployment and hardship facing consumers in our key Alberta and Alaska markets due to weak oil prices, we are improving sales year over year, increasing our operating profit before amortization and building the foundation for future growth. Our investment in store renovations is paying off, as is our work to reduce inventory levels and leverage our competitive advantages through private labelling, e-commerce and new marketing channels. "The Board is fully supportive of ongoing Board renewal. However, the Board believes it would be irresponsible to accept a minority investor's demand that it be permitted to nominate a majority of the directors. We urge shareholders to review our Circular and see for themselves that Liquor Stores is proactively responding to market conditions and creating a path for value creation. Should PointNorth attempt to seize control of Liquor Stores at our forthcoming AGM, we recommend shareholders proceed with caution and think carefully about who they should trust as stewards of their investment. We urge shareholders to vote for the directors nominated by the Company." Liquor Stores has filed and mailed its Management Information Circular for the Meeting and recommends that shareholders vote for the Board's eight experienced and qualified incumbent nominees. The Circular is available on the Liquor Stores website at https://www.liquorstoresna.ca/investors and under the Liquor Stores profile at www.sedar.com. In addition to highlighting the value creation initiatives undertaken over the past few years, the Board outlines in the Circular the strategic importance of Liquor Stores' market diversification and outlines work underway to improve inventory management to free up more cash flow to invest in the business. Liquor Stores has appointed a special committee of independent directors to assist the Board in its response to PointNorth. The members of the special committee are Jim Dinning (Chair), Gary Collins, Henry Bereznicki and Robert Green. The special committee has engaged Scotia Capital Inc. as its financial advisor and Burnet, Duckworth & Palmer LLP as its legal advisor. https://www.marketwired.com/press-release/liquor-stores-na-ltd-warns-shareholders-an-activist-investor-may-seek-control-liquor-tsx-liq-2215386.htm