Court Concludes Oremex Silver's Directors Engaged in Improper Conduct
Concerned Shareholders Urge Shareholders to Replace Board by Voting YELLOW Proxy
TORONTO, ONTARIO--(Marketwired - Dec 20, 2013) - The concerned shareholders of Oremex Silver Inc. (Oremex or Company), led by Concept Capital Management Ltd. and Sprott Asset Management LP, are pleased by the recent Ontario Superior Court of Justice decision that will prevent further manipulation of the voting process by Oremex at its annual general meeting of shareholders on December 31, 2013 in Toronto.
The concerned shareholders pursued legal action against Oremex to address ongoing concerns and validate a requisitioned meeting held on November 26, 2013. Oremex subsequently postponed the meeting until December 31, 2013 and changed the record date from October 25, 2013 to November 29, 2013. On that same record date of November 29, Oremex issued Global Resources Investment Ltd. (GRIT) with 34.5 million or 18.82% of the diluted issued and outstanding shares. Justice D. M. Brown concluded "that by the end of November the Directors [of Oremex] were looking for a way to influence the voting at the December meeting." With respect to issuing a significant number of shares to GRIT, Justice Brown stated: "That conduct was improper, and I conclude that it amounted to an attempt at the late manipulation by the Directors of the voting process for the December meeting by diluting the shares of the company." Justice Brown therefore fixed a new record date of November 27, 2013 for the December Meeting, has required the appointment of an independent chair and further directed that the meeting "not be cancelled, rescheduled or adjourned."
"We are pleased that the court has recognized this blatant attempt by Oremex's directors to manipulate the voting process," said Frank Högel of Concept Capital Management Ltd. "We are looking forward to the upcoming meeting and are confident that shareholders agree that now is the time for change. We urge all shareholders to vote their Yellow proxy to get Oremex back to business."
At the meeting, shareholders will be asked to vote on the election of directors and appointment of auditors. The concerned shareholders have called for the removal of all the current directors of Oremex due to lack of adequate oversight and mismanagement, and are proposing a new slate of fully independent nominees to the board of directors of Oremex which is comprised of Frank Högel, Allan Folk and Keith Stein.
Get Oremex back to business by voting your YELLOW proxy:
Shareholders are urged to re-cast their votes in favour of the concerned shareholders' nominees before Friday, December 27, 2013 at 8:00 a.m. (Toronto time).
The concerned shareholders collectively hold or control approximately 15% of the issued and outstanding shares of Oremex. The concerned shareholders urge all shareholders to support the proposed independent nominees to the board of directors of Oremex on December 31, 2013 and put a stop to the ongoing mismanagement of the company by the current board.
Oremex's upcoming annual general meeting of shareholders will be held on December 31, 2013 at 10:00 a.m. (Toronto time) at Wildeboer Dellelce Place 365 Bay St., Suite 800, Toronto, Ontario.
If you have any questions or need assistance in voting your YELLOW form of proxy or YELLOW Voting Instruction Form, please contact Kingsdale Shareholder Services Inc. at 1-800-775-1986 (toll free within North America) or 1-416-867-2272 (collect calls accepted), or by email at email@example.com.
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