The Toronto Stock Exchange (TSX) has been asked by a group of concerned shareholders to monitor any proposal made by Guyana Goldfields Inc. for signs of entrenchment, shareholder dilution or attempts to structure around regulatory shareholder approval requirements.
Making the request are Northfield Capital Corporation’s Robert Cudney, Donald Ross, Gretchen Ross, and Patrick Sheridan. Together, they own just about five percent of the Canada based company. Over a week ago, the group accused the current board of making a series of poor decisions which led to the loss of over US$700M in shareholder value which was accumulating since 2016.
It’s letter to the Toronto Exchange, the Group said, “Until after a meeting is called and held and the direction of Guyana Goldfields Inc is rightly determined by its shareholders, the TSX should carefully monitor and review any acquisition, financing, issuance of securities, or other defensive tactics or potentially-dilutive transaction or series of transactions proposed by Guyana Goldfields Inc., and require that any such transaction or series of transactions be approved by shareholders as a condition of TSX’s consent, including with respect to any issuance of securities by Guyana in connection with such transaction or series of transactions.”
The Toronto Exchange was also informed that while shareholders have lost over 80 percent of their investment since 2016, the Board continued to reward itself handsomely and has offered no plan to turn things around.
Additionally, one of the major shareholders, Mr. Sheridan said that since exposing the aforementioned, there has been overwhelming support for the Board to be replaced.
In a letter seen today to local authorities here, Sheridan said, “The overwhelming support that we’ve received from other shareholders who have contacted us is a testament to the strong desire for change at Guyana Goldfields. On top of this, and even more disconcerting, is the number of investors who have told me they have dumped their stock or that they won’t invest in Guyana Goldfields because they no longer trust the competency of the current Board.”
He continued, “Shareholders are telling us that they’ve had enough of the dramatic value-destruction that has occurred under the stewardship of this Board and are seeking a new path, with new directors, who can turn things around. They share the Concerned Shareholders’ view that the longer it takes to change the Board, the worse things are going to get for shareholders.”
The Guyana Standard understands that the said shareholders are urging the current Board to refrain from any self-serving or anti-shareholder defensive actions that inhibit shareholders’ ability to exercise their legal rights.