Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

Andrew Peller Ltd T.ADW.A

Alternate Symbol(s):  T.ADW.B | ADWPF

Andrew Peller Limited is a producer and marketer of wines and craft beverage alcohol products in Canada. With wineries in British Columbia, Ontario and Nova Scotia, the Company markets wines produced from grapes grown in Ontario’s Niagara Peninsula, British Columbia's Okanagan and Similkameen Valleys, and from vineyards around the world. Its premium and ultra-premium Vintners' Quality Alliance brands include Peller Estates, Trius, Thirty Bench, Wayne Gretzky, Sandhill, Red Rooster, Black Hills Estate Winery, Tinhorn Creek Vineyards, Gray Monk Estate Winery, Raven Conspiracy and Conviction. It imports wines from various wine regions around the world to blend with domestic wine to craft these products. It also produces craft beverage alcohol products, including No Boats on Sunday ciders and seltzers, and various spirits and cream whisky products under the Wayne Gretzky No. 99 brand. It produces and markets premium personal winemaking products through its subsidiary, Global Vintners Inc.


TSX:ADW.A - Post by User

Comment by johnathamiltonon Feb 15, 2024 8:03pm
89 Views
Post# 35883240

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Should dual class shares be eliminated?

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Should dual class shares be eliminated?
TheCount11 wrote: I agree company is not being run with the interests of all shareholders in mind.  I also agree that the assets have a lot of value.  There are a variety of assets and inputs with the main outputs being food and wine.  Management has not used the assets to maximize shareholder value over the last 12 years if not longer.  When I look at a long term series of profits, executive compensation and interest expense a troubling picture emerges.

The majority of Shares are Class A (35,243,647) which have delegated all decisions and responsibilities to Class B (8,144,183).  If both parties to the relationship are utility maximizers, there is good reason to believe that the B Class will not always act in the best interests of the A Class.

"On February 9, 2024, the Company entered into agreements with Peller Family Enterprises Inc., the Company’s controlling shareholder, and others to formalize the retirement and transition of John E. Peller as President and CEO as announced on November 9, 2023. In accordance with these agreements, the Company is required to pay $3.0 million in legal and advisory fees on behalf of shareholders, which will be paid in the fourth quarter of fiscal 2024. The agreement will pay John E. Peller $4.5 million in a retirement allowance in addition to his ongoing salary as President and CEO until a successor is appointed. In addition, the Company has also entered into a consulting agreement with John E. Peller that will take effect upon his retirement and transition, which
will include regular monthly payments for services provided and a $2.0 million consulting fee, that will be paid quarterly. The Company also amended its credit facility to accommodate these payments."

The dollar equivalent losses to Class A are not just the $9.5 million but all the debt piled on, the missed profits and the captain leaving the ship as it enters a massive storm.

 

Your points remind me more and more of Hollinger Inc., in which Conrad Black's personal corporation had a management agreement with Hollinger for $millions per year. He bled the company white. I see the same thing happening here. 
<< Previous
Bullboard Posts
Next >>