- Reminds shareholders of upcoming proxy deadline of Tuesday October 31st at 5:00pm (PDT)
- Urges shareholders to vote their BLUE proxy in favour of five
experienced nominees
- Confirms he will personally bear all his costs on the proxy
fight and challenges Greg Sunell to
do the same
VANCOUVER, Oct. 26, 2017 /CNW/ - Daniel Russell and the
Concerned Shareholders of Synex International Inc. (TSX:SXI)
("Synex" or the "Company") reminds shareholders to vote their BLUE
proxy before Tuesday October 31st at
5:00 P.M. (Pacific Daylight Time) and
issues a challenge to Greg
Sunell.
Daniel Russell and the Concerned
Shareholders of Synex wish to thank the many shareholders that have
already voted their BLUE proxy for a new, invigorated and highly
qualified board that is focused on you, the shareholder, and on
harnessing the potential of Synex. Having spoken with many
shareholders in the past month, we are aware that some feel so
disenfranchised by the current board and management that they are
considering simply abstaining from voting. As the largest
shareholder of Synex, Mr. Russell shares your frustration but urges
you to be part of the solution. Abstaining from voting risks
continued stagnation of your investment.
Only by voting the BLUE proxy can you bring new talent,
energy and focus to the Synex board.
Over the course of many conversations with shareholders, the
question continues to be raised of how we got to this point.
The answer is painfully simple.
- As part of discussions around the most recent equity financing,
Mr. Russell asked for some due diligence to be completed on the
third party making the investment proposal and for a detailed
accounting disclosure of how money has been spent. Mr. Russell has
willingly participated in every financing round for many
years and it is a reasonable question for any investor to request
details on how money is being spent and a duty as a director to
know who you are doing business with.
- The reaction of Greg Sunell and
his allied board associates was to remove Mr. Russell as a board
nominee for this meeting. Moreover, these are the events that the
incumbents portray as Mr. Russell "being obstructive".
- Mr. Russell did not want this costly and distracting fight but
in order to protect his investment – and yours – was forced to put
together an alternate board focused on running Synex in a
transparent, professional manner in stark contrast to the recoil
shown by the incumbents at the first hint of reasonable
scrutiny.
The current management and board's campaign has been built
around suggestion and innuendo and not on fact. They have
suggested, without basis, that Mr. Russell has a hidden agenda for
personal enrichment that will drive costs up.
Mr. Russell issued the following response: "For the record,
my plan is to be laser-focused with shareholder capital and to only
spend on those things that are necessary or drive shareholder
value. I have spoken with shareholders who are concerned
about the cost of this contested board election. While it is
industry standard practice for a dissident to recover their costs
on success, I want to publicly show that my incentive is solely on
doing what is right for all shareholders. I will bear all the
costs associated with bringing much needed change to the board of
Synex and I challenge Greg Sunell,
as the second largest shareholder to do the same. Greg, if
you are in this for the benefit of shareholders then stop spending
shareholders' money and make the same personal commitment to fund
your own defence."
Synex is at a cross roads and shareholders have a clear
choice.
A vote on the BLUE Proxy is a vote for change in the way
Synex is run and particularly in its board oversight. A
new board that puts shareholders and employees first.
or
A vote on the WHITE proxy is acceptance of continued
under-performance and acknowledgement that any reasonable level of
scrutiny will be rejected.
If you have already voted on the white proxy you can still
change your vote at any time up until the proxy cut-off by voting
again on the BLUE proxy. Your latest dated proxy is the vote that
will count.
YOUR VOTE IS IMPORTANT REGARDLESS OF THE NUMBER OF SHARES YOU
OWN. PLEASE VOTE TODAY.
If you have questions or need help voting their shares call
Kingsdale Advisors at 1-866-581-0507 or 1-416-867-2272 outside of
North America or email
contactus@kingsdaleadvisors.com.
Advisors
Daniel Russell has retained
Dentons Canada LLP as legal counsel, and Kingsdale Advisors as his
strategic shareholder advisor and proxy solicitation agent.
ADDITIONAL INFORMATION
This press release contains forward-looking statements. All
statements that are not clearly historical in nature or that
necessarily depend on future events are forward-looking, and the
words "anticipate," "believe," "expect," "estimate," "plan," and
similar expressions are generally intended to identify
forward-looking statements. These statements are based on current
expectations of the Concerned Shareholders and currently available
information. They are not guarantees of future performance, involve
certain risks and uncertainties that are difficult to predict, and
are based upon assumptions as to future events that may not prove
to be accurate. The Concerned Shareholders do not assume any
obligation to update any forward-looking statements contained in
this press release, except as required by applicable law. Please
refer to the Concerned Shareholders' circular for further
information regarding the risks of these statements.
Except where otherwise stated herein, the statements contained
in this press release are not made by or on behalf of the
management of the Company but are made by or on behalf of the
Concerned Shareholders.
A copy of this press release may be obtained on the Company's
SEDAR profile at www.sedar.com.
SOURCE Daniel Russell