KEWL Keweenaw Land Association Limited (PK)

In response to yesterday’s press release by Keweenaw Land Association (“KEWL”), Shareholder Ronald Gutstein issued the following statement:

“I am aware that David Ayer does not support my candidacy for the Board of Directors of Keweenaw. Although Mr. Ayer would like to ascribe a nefarious purpose to my decision to include him on my slate of candidates for this year’s annual meeting, nothing could be further from the truth. Mr. Ayer appears on my slate for the simple reason that it is the best interest of shareholders to maintain board continuity. As my fellow shareholders already know, a new member was chosen for the Board of Directors this summer following the resignation of a longtime board member. I believe that, should my efforts be successful, it would not be in the best of interest of our company to have three new directors on the board in a single year.

Management was well aware that I had only made one nomination for this year’s contest, and as such they should have realized that I would be soliciting proxies for one of the other board-nominated candidates. It is a common practice for opposition slates not seeking total board replacement to solicit proxies for existing board members. The ideal situation would have been for Keweenaw to follow best practices in corporate governance and have the entire board up for re-election at one time. Unfortunately, since Keweenaw maintains a staggered board, I was unable to offer an alternative candidate to the individual they appointed in August. I was therefore forced to include one of management’s candidates in my slate of nominees.

It is important to note that last year my slate was supported by Institutional Shareholder Services (ISS), a leading independent proxy advisory firm. In giving their support they stated,

“… Mr. Gutstein’s background and experience in the capital markets especially as they pertain to the marketing of small, thinly traded securities may help the company achieve increased visibility in the investment community that ultimately may further narrow the value gap. Additionally, Mr. Gutstein promises to work to improve the company’s corporate governance, especially bylaws pertaining to supermajority vote requirements…”

Mr. Ayer’s concerns about possible disenfranchisement of shareholders are unfounded. My efforts have never been about gaining board control; they have always been about gaining an independent voice for the non-affiliated owners. As stated in my proxy, Broadridge records indicate that roughly 28 percent of our company’s stock is held at Essex Bank, an affiliate of the Ayer family office. This significant block of stock makes it difficult for minority shareholders to be heard.

Finally, it has never been my goal to block a quorum. Rather, I am trying to ensure that the unaffiliated investors have the ability to voice their concerns. I have stated this fact for the last three years and in each of those years the number of shareholders choosing to support my position has increased.

I look forward to a productive exchange of ideas on how our company can close the gap that exists between the value of its assets and the underlying markets, and how our company can improve its operating results so that it is more in line with its peers.”

If you have questions or need assistance in voting your shares, please call: Alliance Advisors, LLC 200 Broadacres Drive 3rd Floor Bloomfield, NJ 07003 Toll Free: 877-777-5613 Banks and Brokerage Firms Please Call: 973-873-7710