CALGARY, ALBERTA--(Marketwire - Feb. 14, 2013) - JEC Capital Partners, LLC and another shareholder (together, the "Concerned Shareholders") today requisitioned a meeting of the shareholders of Ithaca Energy Inc. ("Ithaca" or the "Company") pursuant to section 142 of the Business Corporations Act (Alberta), to elect two new independent directors to the board of directors of Ithaca (the "Requisition"). Together, the Concerned Shareholders own more than 7% of Ithaca's outstanding shares. The Concerned Shareholders have made the Requisition with the goal of significantly enhancing Ithaca's shareholder value.
The Concerned Shareholders have requested that the requisitioned meeting occur by no later than April 8, 2013, which provides the current board of Ithaca with ample time to call and hold a meeting. The Concerned Shareholders believe that the requisitioned meeting is required in order to prevent further deterioration of shareholder value.
The Concerned Shareholders believe that the election of the two new directors at this time is critical to the future success of Ithaca in creating shareholder value. Ithaca's current board has stagnated, undergoing only one change since 2008 and the independent directors own virtually no shares in the Company (less than 0.72%), contrary to principles of good corporate governance and at odds with the interests of the Company's shareholders. Since early 2010, Ithaca's share price has not sustained any increase in value, except on one occasion, during the failed strategic process that the current board oversaw over a year ago. During the past five months, JEC Capital Partners, LLC has made numerous attempts to engage the current board in constructive dialogue regarding strategic actions to maximize shareholder value, without success. While the Concerned Shareholders believe that no single director is solely responsible for the loss in shareholder value, the board as a whole should bear responsibility for the inability to effectively advance the interests of shareholders.
Michael Torok, Managing Director at JEC Capital Partners, LLC said:
"As Ithaca continues to talk about its ability to finance acquisitions with its existing credit facility, JEC Capital has grown increasingly concerned that Ithaca will continue to pursue a strategy that has already failed to generate any shareholder value. This failure is ever apparent by the share price. With the GSA development continuing and major milestones to be achieved this year, we believe Ithaca should immediately rectify the decrease in shareholder value through a formal auction process designed to lead to a sale of the entire Company. Ithaca currently trades at a significant discount to its net asset value despite its attractive assets, with production expected to increase from 7,000 boepd to over 20,000 boepd in the next 12 months."
Detailed information on the nominees of JEC Capital, and the purpose and history leading up to the Requisition will be provided in the information circular of the Concerned Shareholders, which will be filed on SEDAR prior to the requisitioned shareholders' meeting.