modulex wrote:
June 19, 2022
The Honourable Diane Lebouthillier, P.C., M.P.
Minister of National Revenue
Government of Canada
House of Commons
Ottawa, ON
K1A 0A6
Minister Lebouthillier,
I am writing in regard of Glacier Media Inc., which public company listed on the Toronto Stock Exchange under symbol "GVC" is currently subject to fiscal litigations with the Canada Revenue Agency and Province of British Columbia for one of its affiliate as stated in the "Condensed Interim Consolidated Financial Statements" for the Three and nine months period ended Septembrer 30, 2021 and 2020 (Unaudited) described below.
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CONTINGENCY During 2014-2018 an affiliate of the Company (“the affiliate”) has received, from the Canada Revenue Agency (“CRA”) and provincial tax authorities, tax notices of reassessments and assessments relating to the taxation years 2008-2017. The notices deny the application of non-capital losses, capital losses, scientific research and experimental development (“SR&ED”) pool deductions and SR&ED tax credits claimed. As a result additional taxes payable including interest and penalties are assessed at approximately $60.6 million. The affiliate has filed notices of objection with the CRA and provincial taxing authorities and has substantially paid the required deposits, which has been recorded in Other assets. The Company, the affiliate and its counsel believe that the filing positions adopted by the affiliate in all years are appropriate and in accordance with the law. The affiliate is vigorously defending such positions. The Company and its affiliate expect to ultimately be successful in its objection.
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On another front, i am bringing up to your attention some disturbing facts about Glacier Media Inc.
THAT Mr. Sam Grippo, President and Chief Executive Officer of Madison Venture Corporation is Glacier Media Inc. Chairman of its Board of Directors.
Note: Mr. Grippo is positioned in a direct conflict-of-interest situation by being appointed Chairman of Glacier Media Inc.'s Board of Directors, along with fellow directors Mr. Jonathan J.L. Kennedy, Partner of Madison Group and Mr. Bruce W. Aunger, retired Director of Madison Venture Corporation. The other Board members of Glacier Media Inc. are Mr. Geoffrey L. Scott, Vice President of Haywood Securities Inc., Mr. S. Christopher Heming, previously President of Specialty Technical Publishers (a divison of Glacier Media Inc.) from 2000 to 2010 and Mr. Hugh McKinnon, President and Chief Executive Officer of Norscot Investments Ltd. Glacier Media Inc.'s Board of Directors is therefore comprised of at least 3 members out of 6 entrusted to Madison Venture Corporation. Mr. Grippo must either step down or be removed from its chairmanship at Glacier Media Inc. as he cannot assume that role in a transparent and impartial way to the benefit of Glacier Media Inc.'s shareholders at large. His "too strong grip" on Glacier Media Inc., so to speak, and his stewardship along with directors Kennedy and Aunger, namely, committed to Madison Venture Corporation, is not enabling him to be a legitimate Chairman of the Board of Directors as he can turn down, vote against any resolution not beneficial to Madison Venture Corporation in its business relationship with Glacier Media Inc.
THAT Madison Venture Corporation, Glacier Media Inc.'s principal shareholder owns 70,614,392 or 53.23% of its outstanding shares.
THAT Madison Venture Corporation is providing strategic, financial, transactional, advisory and administrative services to Glacier Media Inc. on an ongoing basis, for which it was paid the amount of $1,972,966 for the fiscal year ending December 31, 2021.
Note: If Glacier Media Inc. has to rely on Madison Venture Corporation in providing it the above-mentioned services, it must then be fully managed by MVC and accordingly be taken private. Glacier Media Inc. has no need, no right, nor no obligation to fill the pockets of Mr. Grippo and Madison Venture Corporation as it has internal staff able to carry out these services.
THAT Mr. Jonathan J.L. Kennedy, President, Chief Executive Officer and a Director of Glacier Media Inc. is a Partner of Madison Group, also a private company linked to Madison Venture Corporation. Mr. Kennedy is awarded share option grants in Madison Venture Corporation paid by Glacier Media Inc. Glacier Media Inc. claims that this process is intended to ensure that the CEO is invested in and incented to take actions consistent with the long-term growth of the Corporation and that it is the policy of the Corporation to pay Madison Venture Corporation for these share option grants entitled to Mr. Kennedy. Glacier Media Inc. has no right, nor no obligation to provide its President, Chief Executive Officer and director Kennedy with share option grants in an outside company, which measure must be declared illegal.
Bottom-line, in light of these disturbing facts, Glacier Media Inc. is managed as a private company rather than in conformity to a public company. Its share price, on a consistent downtrend (below $1.00 since September 2015) is currently sitting at $0.38 (52-weeks HIGH/LOW $051.-$0.345). How the hell such a company is unable to create shareholders value after now 7 years?
I hope that the CRA hearings will take notice of these unacceptable behaviours in place at Glacier Media Inc.
Yours truly,
Minority shareholder
Glacier Media Inc.