RE:CVR MEDICAL CORPThis is mine:
Dear sirs,
I am writing to express my concerns about the relationship between CVR Medical and CVR Global and the potential for conflict of interest two of CVR Medical's board members both of whom while representing CVR Medical still have an interest in Global. These same board members also maintain close relationships with the former CEO of Medical who remains the CEO of Global and who has been accused by some shareholders of tunnelling shareholder funds between the two companies, one a public company and the other a private, poorly regulated and poorly auditted concern.
It was the incestuous relationship between the two companies and managed by Peter Bakema, (while CEO of both), that led to the cease-trade order being imposed by the TSX in May 2019 and which remains in place today.
During this years CVR Medical AGM held on 13th February shareholders voted emphatically on a number of motions; motions that Peter Bakema who remains the largest shareholder in CVR Medical through his interest in CVR Global voted against. One such motion was to restrict the nuumber of board members to three and over 57% of all shareholders voted in favour of this. Since the vote, however the newly appointed board has shown a blatant disregard for the outcome (and the shareholders wishes) and appointed four board members one of whom (Joe Lynch) appears to have no specific role on the board and yet remains also within the leadership team of CVR Global, holds a significant number of shares in CVR Global and maintains a close relationship with Peter Bakema providing a potential conduit for him to remain in control of the relationship between the two companies.
My concern relates to two of the new directors, Dr Bendick and Mr Joe Lynch
Dr Bendick : just appointed to the board of CVR Medical having only just resigned from CVR Global and I believe he remains a creditor of CVR Global to the tune of $200k. I also believe that Dr Bendick also retains a small shareholding in CVR Global.
Mr Joe Lynch: also just appointed to the board of CVR Medical and as of today was also shown as a member of the CVR Global Leadership team on their website. Mr Lynch owns 7.5% of the shares in CVR Global ( and 0.53% of shares in Medical)and as such I have major concerns about his ability to remain objective and independent of Peter Bakema's influence.
Questions I would like to understand what recourse as a shareholder in CVR Medical I have to force the board of CVR Medical to work within the boundaries of the actions voted for at the AGM as it surely can not be possible for shareholders to vote for one thing and for the board to do something completely different. I would also like to understand what enforcement capabilities your organisation as regulator is able to take in matters such as this flagrant disregard for shareholder wishes.