Eagle Energy Inc EGRGF

RE:ISS Recommendation

[whodathunkit]

Scottie99 wrote: Who does ISS recommend because the Challengers is quoting ISS recommendation for Blue and the current Board is quoting ISS recommendation for Yellow?

Institutional Shareholder Services Confirms the Need for Change

Vote for Yellow

Eagle Energy Inc. Announces Independent Advisory Firm Recommendation Supporting a Vote on Eagle's YELLOW Proxy and Additional Cost Reduction Initiatives

https://web.tmxmoney.com/article.php?newsid=8455279144863741&qm_symbol=EGL

ISS Recommends Yellow Proxy

ISS, a leading independent advisor to institutional investors on corporate governance and proxy voting analysis, has recommended that shareholders vote using only Eagle's YELLOW proxy for the majority of Eagle's current directors and DO NOT VOTE the dissidents' blue proxy. 

In its report dated June 14, 2017, ISS gave the following reasons why shareholders should NOT vote for the dissidents' blue proxy (emphasis added):

• Given that control of the board is being sought, the dissidents' disclosed business plan does not appear to provide any new detailed long-term strategic initiatives.
• While the proposed board reconstitution might trigger a default event under the new loan, no specific alternative financing was proposed by the dissidents.
• The timing and urgency of the [dissidents'] proposed liquidation execution for some of the company's assets (in order to repay debt) do not appear to represent an optimal risk-reward combination for the shareholders in the long-run given current depressed valuations and given loss of potential upside associated with such liquidated assets.
• [The dissidents state] that the company's assets are of a high quality, while at the same time, the dissidents propose to sell a portion of these assets in what appears to be not ideal market conditions.
• Not so long ago, one of the dissidents offered to buy one of the company's assets, which might indicate that even the dissidents themselves think that being on a buying side of energy assets transaction appears to be more attractive at this time.

The obvious answer to your question is, they say to vote yellow.  They recognise the need for change but have recommended voting yellow.  So what is it you find confusing?

Cheers.