Leading Independent Proxy Advisor Recommends GrowMax Shareholders Vote “FOR” the Proposed Acquisition of PrimaSea Holding...
September 13 2018 - 8:30AM
GrowMax Resources Corp. (“
GrowMax”) (TSX-V:
GRO) (“
Company”) is pleased to announce that
Institutional Shareholder Services Inc. (“
ISS”), a
leading independent proxy advisory firm, has recommended that
GrowMax shareholders vote “FOR” the proposed acquisition of
PrimaSea Holdings Ltd. (“
PrimaSea”) and “FOR” all
of management’s director nominees at the Company’s annual and
special meeting of shareholders (the “
Meeting”) on
September 25, 2018.
In its analysis of the transformative acquisition of
PrimaSea, ISS stated:
“The proposed agreement makes strategic sense as the company
will be able to leverage its strong cash position to expand
Fertimar operations, its sales and cash-flows, and will be in
position for additional future acquisitions and growth
opportunities.”
“... the transaction provides an access to a significant
lithothamnion source with Fertimar having an established operation
extracting lithothamnion and producing and selling its products.
The resulting issuer will benefit from a portfolio of high-margin
products for crop nutrient and animal feed, demand for which,
according to the management estimations, has been showing a double
digit annual growth rates. Additional benefits of the proposed
transaction include scalable production capacity of Fertimar and
acquisition of operational set of assets (e.g., suction dredge
vessel and an industrial plant). Moreover, according to the
management estimation, Fertimar’s production will increase
five-fold to 120,000 tonnes per year by 2022 due growth of
sales.”
“...consolidation of organic animal feed supplement and plant
nutrient assets in Latin America, one of the fastest growing
markets for fertilizer products, appears to be an attractive
opportunity, especially considering the board's expertise.
Moreover, the Fertimar's products Primaz and Lothar are approved in
accordance with multiple international standards for organic
fertilizers (including the U.S., Canada, the EU, Brazil, and
Japan). More importantly, the acquisition will bring an operating
producer with proven harvesting, processing and sales capabilities
and with commercialized products both domestically and
internationally.”
In its commentary about GrowMax’s Board of Directors and
management, ISS wrote the following:
“Review of the company's TSR on a one-year timeframe and since
announcement of a new strategic direction does not provide a
negative picture of performance relative to the median TSR of the
relevant peer group.”
“It should be noted that the board has been refreshed during the
last year with addition of two new board members. Specifically, on
June 28, 2017, two independent directors - John Van Brunt and
Steven Paxton – have joined the board.”
“On balance, the dissident has not made a compelling case for
change, thus a vote FOR all management nominees is warranted.”
The proxy advisor also criticized the dissident for its
“distortions” and lack of a detailed business plan.
Welcoming the favourable recommendation, GrowMax President and
CEO Stephen Keith stated: “We are pleased that ISS is joining a
growing number of shareholders supporting the transformative, value
enhancing acquisition of PrimaSea. The acquisition provides GrowMax
with near-term cashflows, long-term growth and value potential.
ISS’ recommendation provides further validation of our refreshed
board and of our strategic plan to consolidate assets in Latin
America.”
Vote Your BLUE Proxy today to Keep GrowMax on the Right
Track
To benefit from the PrimaSea transaction and to grow value,
shareholders are encouraged to vote only their BLUE Proxy for all
of management’s resolutions including FOR management’s director
nominees and FOR the Proposed Acquisition. The deadline to
vote is 10:00 a.m. (Calgary time), being 12:00 p.m. (Toronto time),
Friday, September 21, 2018.
If you have already voted using another proxy, you may vote
again on the BLUE Proxy. Only the later dated BLUE Proxy will count
as it supersedes any previously given proxy. Vote BLUE at
www.proxyvote.com or call Kingsdale Advisors toll free at
1-866-581-1489 or contactus@kingsdaleadvisors.com. There is a team
standing by to help.
For more information, please contact:
Stephen Keith, P. Eng. President and CEO Tel.: +1 (647) 299 0046
Email: info@growmaxcorp.com www.growmaxcorp.com
Media Contact:
Ian RobertsonExecutive Vice President,
Communication StrategyKingsdale Advisors Direct: +1 (416)
867-2333Cell: +1 (647) 621-2646Email:
irobertson@kingsdaleadvisors.com
About GrowMax Resources
Corp.
GrowMax Resources Corp. is a publicly listed
Canadian company holding exploration assets bearing phosphate and
potassium-rich brine resources on its Bayovar Property, which is
located in the Sechura Desert in northwestern Peru.
GrowMax has been focusing its efforts on
leveraging its existing balance sheet to consolidate junior
fertilizer assets in Latin America, targeting projects with
favorable margins and generating cash flow. The Company’s vision is
to become a prominent player in the Latin American fertilizer
industry.
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