Fintech
The Concerned Shareholders of FAR Resources Ltd. Respond to the Company’s Press Release Dated December 6th, 2021 Announcing a Private Placement of Units
- The Concerned Shareholders strongly condemn the highly dilutive private placement and believe it is totally inappropriate for the Company to be diluting long-suffering existing shareholders less than one week before the shareholders meeting.
- Overwhelming amount of long-term FAR Shareholders are outraged by the continuing self-serving behavior of the incumbent Board.
- The Concerned Shareholders strongly recommend all shareholders vote only the GOLD proxy FOR all three (3) of the Concerned Shareholders’ Nominee’s Slate of exceptionally qualified director nominees no later than 5:00 pm (Vancouver Time) on December 7th, 2021.
- Shareholders who have submitted a proxy in support of current management, may revoke their proxy and change their vote in support of the Concerned Shareholders nominees – it is not too late.
Vancouver, British Columbia–(Newsfile Corp. – December 7, 2021) – This release is provided by Scott Taylor, who, together with joint actors Christina Barnard, Jason Barnard and affiliates (collectively, with Mr. Taylor, “we” or the “Concerned Shareholders”), hold directly and indirectly approximately 7.7%% of the issued and outstanding common shares of FAR Resources Ltd. (CSE: FAT) (FSE: F0R) (OTC Pink: FRRSF) (“FAR” or the “Company”) that are entitled to be voted at the Company’s annual general meeting (“AGM”) to be held on December 10th, 2021. As a result of discussions with shareholders who are supportive of change at FAR, the Concerned Shareholders, have already received expressions of support from shareholders (themselves included) holding over 45% of the shares entitled to be voted at the AGM.
The Concerned Shareholders strongly condemn the highly dilutive private placement which resulted in the Company raising $250,950.00 upon issuance of 2,380,952 units at a price of $0.105 per unit. The Company reported that each unit consists of one common share and one 24 months share purchase warrant. The warrant entitles the holder to purchase one common share, excisable at a price of $0.13 per share for 24 months from the date of issue. The warrants expire December 3rd, 2023.
The current Board comprised of Mssrs. Gammack and Dinning have proven once again they do not understand or know how to properly value the Company’s Lithium assets. Far Resources is at a critical stage in its evolution which requires a Board with the requisite skills to engage investors and conduct financings that position the Company to deliver maximum shareholder growth. Clearly this dilutive private placement was completed by current management exercising zero care over the treasury of the Company. The Board failed to meet its duty of care to protect the investment of all shareholders with a massive discount private placement that appears to have been done with no apparent rational or strategy. Offering such an attractive pricing scheme to a select few shareholders calls into question whether the Board recognizes its fiduciary obligations to protect the interests of all shareholders.
Pricing on the private placement was particularly egregious given the current market valuations other companies’ Lithium assets are receiving including a Company with assets contiguous to FAR’s Manitoba Lithium assets. Long term shareholders believe the Company’s lithium assets are significantly undervalued, due to weak oversight by the Board and they are telling us that they are voting out the current Board at the December 10th AGM.
It is notable that FAR’s stock price closed at $0.215 on December 6th, 2021 down 14% on the day. This single day share price drop occurred on the same day as the Company’s private placement press release. Given the Company had no other significant news on December 6th, it is reasonable to conclude that the market reacted quite negatively to the private placement. Once again the Board has demonstrated their lack of awareness to market sensitivity.
The Concerned Shareholders believe it is totally inappropriate for the Company to be diluting long-suffering existing shareholders one week before the shareholders meeting which will most certainly see the replacement of the incumbent Board and Management team.
Importantly the Concerned Shareholders are being bombarded with telephone calls from long term shareholders who are outraged by the continuing self-serving behavior of the incumbent Board. In response we strongly recommend all shareholders vote only the GOLD proxy FOR all three (3) of the Concerned Shareholders’ Nominee’s Slate of exceptionally qualified director nominees no later than 5:00 pm (Vancouver Time) on December 7, 2021. Shareholders are encouraged to remain attentive to developments at FAR Resources by visiting the Concerned Shareholders website www.farbetterforall.com where you will find the latest news on plans to replace the Board and where we anticipate posting overwhelming vote results announcing the election of the Concerned Shareholders nominees.
While the Board’s latest hijinks seem patently unfair and inappropriate given the incumbent Board will not be in place beyond December 10th, 2021, we remind all shareholders that there is much to be excited about with the prospects for the Company. The Concerned Shareholders proposed slate of Director nominees have developed a comprehensive plan to change the direction of FAR and create shareholder value.
It is not too late to change your vote. Shareholders who have submitted a proxy in support of management, may revoke their proxy and change their vote in support of the Concerned Shareholders nominees. Shareholders requiring assistance to do so should contact Gryphon Advisors at the number provided below.
Shareholders with questions on voting should contact Gryphon Advisors Inc. at 1.833.292.5847 toll-free in North America (1.416.902.5565 by collect call) or email us at inquiries@gryphonadvisors.ca or visit www.Farbetterforall.com for up-to-date information and assistance in voting.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/106932
