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SERVICES OR DISSEMINATION IN THE UNITED
- ISS notes that Dissidents have failed to make compelling case
- Time is short. Shareholders urged to vote prior to the proxy
voting deadline of Friday, December 11,
2020 at 9:30 a.m. (Saskatoon
SASKATOON, SK, Dec. 9, 2020 /CNW/ - Karnalyte Resources Inc.
("Karnalyte" or the "Company") (TSX: KRN) today
announced that leading independent proxy advisory firm
Institutional Shareholder Services Inc. ("ISS") recommends
that Karnalyte shareholders vote AGAINST the removal of current
Directors and WITHHOLD from voting for the slate of Dissident
nominees in relation to the Company's upcoming Special Meeting of
Shareholders (the "Meeting").
In making its recommendation, ISS carefully and independently
reviewed the arguments made by both sides. In making its
recommendation, ISS stated:
"The dissident has failed to make
a compelling case that a change in board control is warranted…As
such, shareholders are advised to vote AGAINST the removal of the
current directors and to vote WITHHOLD for the slate of dissident
"The voting recommendations from ISS against the removal of the
current Board and to withhold from the Dissident's nominees
reinforces that changes to our board are not warranted and that it
is in Karnalyte's best interest to move ahead with its existing
board members," said Danielle
Favreau, Karnalyte's Interim CEO. "Time is short. In order
to ensure that your votes are received in time to be counted at the
Meeting, shareholders should vote immediately and as recommended by
our Board and ISS to put this matter behind us."
VOTE YOUR BLUE MANAGEMENT PROXY FORM TODAY
Karnalyte's Board unanimously recommends that shareholders vote
as follows using only the BLUE MANAGMENT PROXY FORM:
- AGAINST the Directors Removal Resolution;
- WITHHOLD from the Dissident Director Nominees (as described in
the Management Information Circular).
The Special Meeting of Shareholders is scheduled for
Tuesday, December 15, 2020 but given
the COVID-19 pandemic, shareholders are strongly encouraged not
to attend the meeting in person. Instead, in order to ensure your
vote is counted, shareholders are urged to vote in advance and
ensure that your vote is received prior to the proxy voting
deadline of Friday, December 11, 2020
at 9:30 a.m. (Saskatoon Time).
For more information, please refer to the management information
circular filed on the Company's profile on the SEDAR
About Karnalyte Resources Inc.
Karnalyte Resources Inc. is a development stage company focused
on two fertilizer products, potash and nitrogen, to be produced and
manufactured in Saskatchewan.
Karnalyte owns the construction ready Wynyard Potash Project, with
planned phase 1 production of 625,000 tonnes per year
("TPY") of high grade granular potash, and two subsequent
phases of 750,000 TPY each, taking total production up to 2.125
million TPY. Karnalyte is also exploring the development of the
Proteos Nitrogen Project, which is a proposed small-scale nitrogen
fertilizer plant with a nameplate production capacity of
approximately 700 metric tonnes per day ("MTPD") of ammonia
and approximately 1,200 MTPD of urea, and a target customer market
of independent fertilizer wholesalers in Central Saskatchewan.
ISS is a leading provider of corporate governance offerings
including objective governance research and recommendations, and
end-to-end proxy voting and distribution solutions. Institutional
clients rely on ISS for their corporate governance views, to
identify environmental, social and governance risk, and to manage
their complete proxy voting needs on a global basis. ISS covers
approximately 44,000 meetings in 115 markets yearly, delivering
proxy research and vote recommendations while working closely with
clients to execute more than 10.2 million ballots representing 4.2
Certain information included in this press release is
forward-looking, within the meaning of applicable Canadian
securities laws. Forward-looking information is often, but not
always, identified by the use of words such as "anticipate",
"believe", "could", "estimate", "expect", "plan", "intend",
"forecast", "future", "guidance", "may", "predict", "project",
"should", "strategy", "target", "will" or similar words or phrases
suggesting future outcomes or language suggesting an outlook.
The forward-looking statements contained in this press release
are based on certain key expectations and assumptions made by
Karnalyte, including, without limitation, assumptions as to:
projected economics for the Company's planned potash
production facility, the confirmation in an independent
feasibility study of Karnalyte's assumptions regarding the
technical and economic viability of the Proteos Nitrogen Project,
the ability of Karnalyte to obtain financing on terms favourable to
the Company, and the ability of Karnalyte to receive, in a
timely manner, the necessary approvals from
the Company's board of directors, shareholders,
regulatory authorities, and other third parties.
Karnalyte believes the expectations and assumptions upon which
the forward-looking information is based are reasonable. However,
no assurance can be given that these assumptions and expectations
will prove to be correct. Accordingly, readers should not place
undue reliance on the forward-looking statements and information
contained in this press release. Without limiting the generality of
the foregoing, readers are cautioned that the Company has not
received a feasibility study prepared by a third party
with respect to the Proteos Nitrogen Project.
Actual results may vary from the forward-looking information
presented in this press release, and such variations could be
material. Risk factors and uncertainties could cause actual results
to vary from the forward-looking information in this press release.
Additional information on forward-looking statements and other
factors that could affect Karnalyte's operations and financial
results are included in documents on file with Canadian securities
regulatory authorities and may be accessed through
the Company's profile on the SEDAR website
These forward-looking statements are made as of the date hereof
and are expressly qualified in their entirety by this cautionary
statement. Subject to applicable securities laws,
the Company assumes no obligation to update or revise
them to reflect new events or circumstances.
SOURCE Karnalyte Resources Inc.