Guyana Goldfields’ shareholders await respond from Board -willing to go the whole gamut

Jan 19, 2019 News

The group of “concerned” Guyana Goldfields shareholders has signaled its intention to go the full gamut to get the company to move away from its current trajectory, which the shareholders feel will only harm their investment.
Patrick Sheridan is one of the shareholders. His advisor, Ian Robertson, spoke to Kaieteur News via telephone from Canada.
Robertson said that that the board is still to respond to the concerns of the shareholders. However, Robertson said, “It does not stop here. The rules give the board 21 days to respond and we have to wait. But there will be further action once that time elapses.”
Two weeks ago, the Concerned Shareholders announced that they requisitioned a Meeting for the purpose of reconstituting the entire board with new experienced, accountable and qualified directors capable of fixing performance issues, leading a share price recovery and executing a value-maximizing transaction. Under applicable rules, the Board must honour the Concerned Shareholders’ request by calling a meeting within 21 days of the requisition.
The shareholders said that “the overwhelming support that we’ve received from 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,” said Sheridan, one of the largest shareholders and founder, former Executive Chairman and former director of the Company.
“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.”
A few days ago, this newspaper reported that the shareholders have approached the Toronto Stock Exchange (TSX) asking the agency to look out for signs of entrenchment, shareholder dilution or attempts to structure around regulatory shareholder approval requirements in any proposal made by Guyana Goldfields Inc.
Making the request are Northfield Capital Corporation’s Robert Cudney, Donald Ross, Gretchen Ross, and Patrick Sheridan. Together, they own not less than five percent of Guyana Goldfields which is based in Canada.
The shareholders had revealed to the media that Guyana Goldfields lost over CDN$1 billion in value since 2016 because of the Board’s operational failures, irresponsible actions and risky decisions.
The shareholders said, “To add insult to injury, while shareholders have lost over 80% of their investment since 2016, the Board has continued to reward itself handsomely and has offered no plan to turn things around…
“The Board has demonstrated an inability to stop the freefall of the Company’s share price. Enough is enough,” said Mr. Sheridan.
In its 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.”

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