The Concerned Shareholders of Nordex Explosives Ltd.

May 04, 2010 16:01 ET

The Concerned Shareholders of Nordex Explosives Ltd.: Nordex Board Suppressing Shareholder Democracy

MONTREAL, QUEBEC--(Marketwire - May 4, 2010) - Jacques and Phyllis Levesque (the "Concerned Shareholders"), owners of approximately 16.3% of the outstanding shares of Nordex Explosives Ltd. ("Nordex"), are concerned that the board of directors of Nordex (the "Board") is delaying the holding of the annual general and special meeting of the company (the "Meeting") without justification, thereby denying shareholders the right to vote with respect to the composition of the board.

By press release dated April 30, 2010, Nordex announced that the Meeting, originally scheduled to be held on May 6, 2010, was postponed indefinitely. As purported justification for the delay, the Board suggested that it was engaged in discussions with the Concerned Shareholders with respect to the slate of directors to be proposed for election at the Meeting. Although there were discussions for a brief period of time between the parties on this matter, the Concerned Shareholders formally terminated such discussions on April 28, 2010. At that time the Concerned Shareholders reiterated their request (originally communicated to the Board on February 12, 2010) that a shareholder meeting be held as soon as possible at which shareholders would have the opportunity to replace the current board of directors with the nominees of the Concerned Shareholders. The Concerned Shareholders are part of a group of ten shareholders which holds in the aggregate over 50% of the common shares of Nordex and which in December 2009 sent a written request to the Board requesting that all members of the Board resign and be replaced by the four nominees of those shareholders.

The Concerned Shareholders believe that the continued postponement of the Meeting is unjustifiable. The by-laws of Nordex require that the annual meeting of shareholders be held by April 30, being four months from its December 31 financial year-end. The Board has been in possession of a valid request from the Concerned Shareholders to call and hold a special meeting of shareholders for almost three months. The Concerned Shareholders want the Board to stop thwarting the right of shareholders to have their voices heard at a shareholders meeting. The Concerned Shareholders reiterate their request, this time publicly, that the Board hold a meeting of shareholders as soon as possible at which shareholders will have the opportunity to replace the current board of directors with the nominees of the Concerned Shareholders.

Contact Information

  • Jacques Levesque
    519-344-2822