GOVERNANCE AT PYR
After the Globe and mail article “At PyroGenesis, a family transaction runs into allegations of fraud”, I decided to revisit the short report and see how this article held up with recent events.
Specifically, the report indicated:
“Claim #2: PyroGenesis waited a year before disclosing Drosrite International (DI), a subsidiary, was controlled by the CEO’s son, and that they were using it to skirt trade restrictions.”
We believe that PYR's disclosure here is another indictment of management’s credibility. Aside from what we believe to be a serious misrepresentation that lasted over a year, we believe there are major issues with this relationship, specifically that its delayed disclosure speaks to internal control and compliance issues at the company.
https://seekingalpha.com/article/4421674-pyrogenesis-business-governance-and-internal-controls-present-significant-risk-price-target
How should we interpret the short reports claims of governance issues with the most recent AMF allegation?
“The AMF has initiated administrative proceedings against Mr. Pascali, Alan Curleigh, who is a director of the Company, and the Company, for actions taken in connection with the 2018 Phoenix Transactions. The AMF alleges that Mr. Pascali was in breach of section 199.1(2) of the Securities Act (Qubec), that Mr. Pascali and the Company made misrepresentations in breach of sections 196 and 197 of the Securities Act (Qubec), that Mr. Pascali and the Company failed to comply with certain disclosure obligations under applicable securities legislation, and that Mr. Pascali and Mr. Curleigh failed to comply with their fiduciary duties as directors of the Company.
https://stockhouse.com/news/press-releases/2023/08/31/pyrogenesis-provides-update-on-amf-investigation
And to add to that, the Globe and mail did some digging into the allegation and stated:
“The AMF alleges, however, there were some problems with the changes. One is that the PyroGenesis board allegedly didn’t learn of the amendments to the deal, which would leave PyroGenesis on the hook for much more money than intended, until 2018. And, the AMF notes, shareholders were not told. But, most startlingly, the AMF is using an opinion from VeriScript, a Quebec expert in signature analysis, to allege that the elder Mr. Pascali did not sign the amendments to the agreement on behalf of Phoenix. The AMF says that during its questioning of his son, the company’s CEO, he “never answered the precise question as to whether he was the author of the signature.” But he did say that if he signed it, it’s because he received verbal instructions from his father. (Mr. Pascali the elder, who resided in Cyprus, died July 28, 2021, as the AMF was investigating.)
“It appears in all probability that the author of the signature said to be that of Pascali Senior is Pascali Junior,” the AMF said in its statement of allegations. And that means, the AMF says, that Mr. Pascali the CEO is in a “blatant conflict of interest” because he was negotiating with himself. (These are translations, as the AMF case documents are solely in French.)”
Source: Milstead https://www.theglobeandmail.com/business/commentary/article-pyrogenesis-quebec-regulator-fraud-allegations/?cmpid=rss
What do folks think?
Is this all a misunderstanding?
Will this all be “resolved over a ham sandwich “ as one poster noted?
And these are allegations, and those involved at PYR are innocent until proven guilty
All in my opinion, do your own due diligence, and don’t trust what you read on these boards by those who are promoters, or those who are a realist, including myself