TORONTO, ONTARIO--(Marketwire - July 17, 2012) - International Datacasting Corporation ("IDC") director Adam Adamou today highlighted the positive impact of the Positive Change agenda, responding to the Company's announcement yesterday.
Highlights are as follows:
- Frank Ruffolo stepping down from board
- Fred Godard may decline board seat, freeing his time to focus on operations
- IDC Management authorizes costly solicitation campaign to shore up vote
- Management presents clear choice - status quo versus growth plan
"We're pleased to see these developments announced" commented Adamou. "As we noted earlier in launching our campaign, many shareholders and recent board members felt Frank's interests and agenda were not well aligned with value creation at IDC. We believe this announcement is a positive step for the Company."
The Company announced yesterday that director Frank Ruffolo will not stand for re-election for the IDC board at the Annual & General Meeting of shareholders and also that Fred Godard will not stand as a director if elected as a Nominee for Positive Change.
"These announcements as well as the responses we have received clearly indicate that our movement is resonating with shareholders" commented Adamou. "Fred's comments are somewhat surprising, given his discussions with us just last week about joining with the Blue slate, but if he decides not to serve on the board, he will have additional time to focus on delivering growth, revenues and the cash flows that he has promised," stated Adam Adamou. "We're quite confident that the new board can fill any vacancy resulting from Fred's decision if he declines to serve. That's obviously his choice. But it won't impact on operations at all, and may enhance them."
International Datacasting Corporation also disclosed yesterday that management of IDC has engaged a proxy solicitation firm to solicit support from shareholders at a cost of hundreds of thousands of dollars in an effort to secure additional votes supporting their slate.
"It really is ironic and disappointing to see the IDC management team talking about the expense of failed business acquisition strategies, largely attributable to the board dysfunction we have already detailed, while authorizing the wasteful spending of hundreds of thousands of shareholder dollars on proxy solicitation firms to try and influence shareholder votes" Adamou noted. "The numbers here are mind boggling. The base expense is $165,000 and if they start calling shareholders the costs will quickly run into the high six figures. Not a particularly good use of cash."
"We agree with the IDC management approach of focusing the current team on growing the business. This makes sense and there are growth opportunities that we can build on. They are interesting, but not exponential and therefore not compelling for new investors and this is reflected in our share price. We do think it makes sense for IDC to pursue our platform model to build additional scale in its business and depth in its teams. We see this as a much more effective use of capital than spending it on entrenching the existing team. We're doing our campaign at the grass roots. We're offering a clear choice and a better alternative," Adamou added.
We encourage all IDC shareholders that share our vision, and our disappointment to please vote your shares by completing, signing and returning the Blue Proxy for the Nominees for Positive Change. Only our "universal" BLUE proxy and voting instruction form includes the names of the entire director Nominees for Positive Change and other matters to be considered at the meeting.
-- Voting in favour of our Nominees for Positive Change may be the single most important vote that you ever make as a shareholder of International Datacasting Corporation --
WE URGE YOU TO IGNORE THE IDC BOARD PROXY OR VOTING INSTRUCTION FORM SENT TO YOU BY IDC AS IT WILL NOT ALLOW YOU TO VOTE FOR THE NOMINEES FOR POSITIVE CHANGE.
For up to date information, follow us on twitter @IDC_Positive or send your questions to IDCrising@gmail.com or call our IDC Positive Change Hotline at 1-647-261-7289. Full instructions on how to vote are set out in the proxy materials and can also be found at http://IDC-Positive-Change.tumblr.com.
Let's put IDC together again,
Adam E. Adamou,
Director, International Datacasting Corporation.