Givex Information Technology Group Limited delays providing requested documents to shareholders
- Givex delays providing documentation and information in response to shareholder requests
- Don Gray and the board of directors provide yet more examples of the company’s tendency to ignore its shareholders
TORONTO, November 7, 2022 /CNW/ – Inter.Act Venture Capital Fund Inc. (“Interact“), the largest independent shareholder of Givex Information Technology Group Limited (“Givex“or the”Company“) (TSX: GIVX), today announced that Givex is continually delaying providing Inter.Act with documentation requested from the Company (the “Company records“).
Prior to calling a meeting of shareholders of Givex (the “Shareholders“) on November 2, 2022 (there “Requisition“), Inter.Act has formally requested Givex to provide it with company records, including certain minutes and resolutions and other records related to Givex shares held by intermediaries and custodians.
In keeping with Givex’s past practice of slowing down its shareholders, more than a week passed until Givex finally provided a response to Inter.Act. The response did not adequately or appropriately address the entire request. Indeed, while Inter.Act had a statutory right under the Business Corporations Act (British Columbia) (the “BCBCA“) to request certain minutes and resolutions of the Company, Givex unilaterally decided to provide these documents only for the last year (since the completion of its reverse takeover transaction), which violates the BCBCA.
As a result, Inter.Act was forced to reiterate its request to Givex and remind them of their statutory right to provide some of the company’s documents or to request that the company actually respond to the request instead of simply ignoring it.
Givex did not respond to the follow-up request until Inter.Act contacted Givex again, prior to the submission of the request, to discuss and hopefully resolve the various shareholder concerns. raised by Inter.Act. Givex again ignored the shareholder’s solution offer and instead indicated that it would respond to its follow-up request on November 1, 2022. Notwithstanding this undertaking, Givex continued to delay, and when it finally responded, Givex again elected to withhold some of the requested company documents.
Capital markets don’t work that way. Shareholders should not be ignored or disenfranchised at the apparent whim of a director or the board. Whether you are president, Don Graythe financial director, Jim Woodsideor one of the supposedly independent directors, Michael Carr, Miles Evans, Robert Munro or most recent addition Divya Kulkarniyou have a duty to your stakeholders, and legal obligations, to act in their best interests and not simply to put management’s interests first.
Don Gray and the board actions appear to be just another data point in the growing list of examples of their apparent efforts to disenfranchise shareholders and again demonstrate to Inter.Act that Givex would sooner protect by Don Gray stronghold than to engage with its Shareholders.
If Givex refuses to engage with its largest independent shareholder, all shareholders should be wary of how they are treated.
Marc Ladouceur, on behalf of Inter.Act, welcomes the opportunity to engage with other shareholders. Mr. Ladouceur can be reached at 416-473-4070 or [email protected].
Norton Rose Fulbright Canada LLP is acting as legal counsel for Inter.Act Venture Fund Inc.
This press release does not constitute a solicitation by Inter.Act. No proxy statement has been filed or issued in connection with this press release or the requisition. For more information regarding the Requisition and Inter.Act’s concerns, please see the press release filed by Inter.Act on November 2, 2022 (there “Press release on the request“), a copy of which may be obtained on the Company’s SEDAR profile at www.sedar.com. As an update to the press release on the application, Marc Ladouceur now beneficially owns or controls 572,500 common shares of the Company.
SOURCE Inter.Act Venture Fund Inc.
For further information: Contacts: Investor Contact: Marc Ladouceur, Office: 416-473-4070, [email protected]