News! 11th Press Release Sedar Oct 13th - Canadian Law Canadian Immigration Laws – the Latest Casualty?
Time to Stop the Oppression of Karnalyte Shareholders by Gujarat State Fertilizers & Chemicals Limited and the Interim CEO
- Concerned Shareholders would like to know if the GSFC engineers who travelled from India to work in Karnalyte’s offices in Saskatoon during the fall of 2019 had all necessary and appropriate work authorizations and permits.
- Concerned Shareholders believe it is time to stop the Interim CEO’s, the Board’s, GSFC’s, and the GSFC Nominees’ oppression of Karnalyte shareholders by appointing a qualified, experienced and independent board of directors
Saskatoon, SK,
October 13, 2020 — On July 7, 2020, a group of Karnalyte Resources Inc. (TSX: KRN) (“
Karnalyte” or the "
Company") shareholders (the “
Concerned Shareholders”), owning not less than 5% of the issued and outstanding shares of the Company, requisitioned (the “
Requisition”) the board of directors (the “
Board”) of Karnalyte to call and hold a special meeting (the "
Special Meeting") of shareholders for the purpose of replacing the Board with a new independent board capable of pursuing opportunities in the Saskatchewan agricultural and fertilizer industry available to the Company that have the potential to create value for all shareholders.
The Concerned Shareholders requested that the Board be constituted with six (6) members, four (4) of whom are highly qualified nominees to be proposed by the Concerned Shareholders, and two (2) of whom will be nominees (the “
GSFC Nominees”) of Gujarat State Fertilizers & Chemicals Limited (“
GSFC”), in accordance with GSFC’s contractual rights to appoint nominees to the Board.
On July 27 2020, Karnalyte called the Special Meeting to be held on December 15, 2020, almost five months from the date of the notice of meeting.
Canadian Immigration Laws The Concerned Shareholders were told on several occasions by the Interim CEO, and by Sanjeev Varma, a long serving GSFC nominee to the Board until recently, that a number of Indian engineers employed by GSFC travelled to Karnalyte’s offices in Saskatoon to work for several weeks during the fall of 2019 on the nitrogen pre-feasibility study.
The Concerned Shareholders would like to know: - how long the GSFC engineers worked at Karnalyte’s offices in Saskatoon?
- did the GSFC engineers have all necessary authorizations and/or permits to work in Canada for many weeks?
- if so, when were they applied for and what was the stated purpose of their work in Canada?
- if not, why not?
- if not, then what did the GSFC engineers tell the Canada Border Services Agency what the purpose of their visit to Canada was for?
- did the GSFC engineers have all necessary authorizations and insurance to drive a Karnalyte owned vehicle in Saskatchewan while working in Karnalyte’s offices in Saskatoon?
- If the GSFC engineers did have all necessary authorizations to work and drive in Saskatoon, who in management and on the Board was aware of the existence of such authorizations?
- is this yet another example of GSFC’s and Karnalyte’s apparent failure to comply with Canadian laws?
The Concerned Shareholders will refer these concerns to the
Canadian Border Services Agency, as well as to Saskatchewan Government Insurance, for their review.
Peter Matson, one of the Concerned Shareholders and amongst the five largest shareholders of Karnalyte, noted that: “
We would like to know whether the Interim CEO and Karnalyte followed all applicable Canadian laws regarding the GSFC engineers working at Karnalyte’s offices in Saskatoon for an extended period of time.” Mr. Matson continued: “
We believe it is a simple question, and we sincerely hope this is not yet another example of a total disregard for Canadian laws.” Contacts
Peter Matson, on behalf of the Concerned Shareholders and the Nominees, welcomes the opportunity to engage with fellow shareholders. Mr. Matson can be reached at
peter.matson.bell@gmail.com.
Additional Information
The information contained in this press release does not and is not meant to constitute a solicitation of a proxy within the meaning of applicable securities laws. Although a record and meeting date for the Special Meeting was established by Karnalyte on July 27, 2020, shareholders are not being asked at this time to execute a proxy in favor of the Nominees. In connection with the Special Meeting, the Concerned Shareholders may file a dissident information circular in due course in compliance with applicable securities laws.
The Concerned Shareholders are not soliciting proxies in connection with the Special Meeting at this time. The Concerned Shareholders may engage the services of one or more agents and authorize other persons to assist in soliciting proxies on behalf of the Concerned Shareholders. Any proxies solicited by or on behalf of the Concerned Shareholders, or by any other agent, may be solicited pursuant to a dissident information circular or by way of public broadcast, including through press releases, speeches or publications and by any other manner permitted under Canadian corporate and securities laws. Any such proxies may be revoked by instrument in writing executed by a shareholder or by his or her attorney authorized in writing or, if the shareholder is a body corporate, by an officer or attorney thereof duly authorized or by any other manner permitted by law.
The registered address of Karnalyte is located at 2100 Livingston Place, 222 3 Ave SW Calgary, AB T2P 0B4. A copy of this press release may be obtained on the Company’s SEDAR profile at
www.sedar.com.