Aberdeen Files Information Circular Outlining Plan for Value Creation and Exposing Dissident Self-Interest
January 7, 2015Leading Independent Advisory Firm Recommends Shareholders Reject Dissident Attempt to Take Control of Aberdeen International
January 19, 2015TORONTO, ONTARIO–(Marketwired – Jan. 14, 2015) – Aberdeen International Inc. (TSX:AAB) has issued the attached letter to shareholders alerting them to the destructive consequences of dissident Ryan Morris’ actions. The letter also highlights the importance of supporting the current experienced board as they implement a real plan for long-term value creation for all shareholders.
Highlights of the letter include:
- A demonstration of how Ryan’s interest is directly opposed to the interests of all other long-term shareholders. Ryan only really became interested in Aberdeen in the last three months and has admitted he wants to make a short-term profit and get out of his stock by liquidating as much of the company as he can. While this may make sense for Ryan because he only bought his stock position recently at $0.15 1/2 per share, it comes at the expense of all other long-term shareholders.
- An item by item debunking of Ryan’s claims including his inability to return cash to shareholders because of his “scorched wallet” campaign that will leave shareholders on the hook for the costs of his proxy battle and fire sale that will see asset sold off at 80%-90% discounts. The letter shows that if Ryan is successful, shareholders will be left with pennies per share not the $0.15 Ryan is promising.
- Exposes Ryan’s lack of understanding of the business he wants to invest in and his history of value destruction including the cumulative underperformance of his fund compared to the S&P 500 of -110% from 2010-2014.
- Reveals that Ryan has slipped a clause into his circular that enables “vote buying” where he will pay brokers –with a shareholder’s own money– to deliver a shareholder’s vote for him.
- Embarrassingly exposes Ryan’s ignorance of company by-laws. Aberdeen’s by-laws are clear that the company requires a majority of directors to be Canadian residents. Ryan doesn’t seem to care about the company by-laws. His slate of nominees are mostly U.S. residents, with only two Canadian residents, which means he couldn’t even convene a board meeting.
- Shows how Ryan uses “inventive math” to scare shareholders about compensation when in fact no bonuses were paid to Aberdeen’s management in the last two years and the company has already committed to a cost cutting plan.
The letter also demonstrates the compelling need for the experience and leadership the current board offers in these challenging market times. Specifically, the current board’s five-point plan to create long-term value including steps to:
- Buy back shares
- Cut costs
- Focus the investment strategy to earn income as well as capital returns
- Enhance governance
- Enhance investment portfolio disclosure and build market momentum
Proxy Voting Instructions
Regardless of how many shares you own it’s imperative that you vote your BLUE proxy:
- AGAINST the first resolution to remove the current board
- FOR Aberdeen’s seven highly qualified current board nominees
- WITHHOLD votes from Ryan’s dissident slate of nominees
Make sure you vote well in advance of the proxy cut-off at 11:00 a.m. EST on January 30th 2015 using the control number on the BLUE proxy or voting instruction form.
If you have any questions or need assistance in voting your BLUE proxy or voting instruction form, please contact Kingsdale Shareholder Services, at 1-866-851-9601 (toll-free in North America), or 416-867-2272 (collect calls accepted) outside North America or by email at contactus@kingsdaleshareholder.com.
To view Shareholder Letter please click on the following link: http://media3.marketwire.com/docs/AberdeenShareholderLetter.pdf
About Aberdeen International Inc:
Aberdeen is a publicly traded global investment and merchant banking company focused on small cap companies in the resource sector. Aberdeen will seek to acquire significant equity participation in pre-IPO and/or early stage public resource companies with undeveloped or undervalued high-quality resources. Aberdeen will focus on companies that: (i) are in need of managerial, technical and financial resources to realize their full potential; (ii) are undervalued in foreign capital markets; and/or (iii) operate in jurisdictions with low to moderate local political risk. Aberdeen will seek to provide value-added managerial and board advisory services to companies.
For additional information, please visit our website at www.aberdeeninternational.ca and follow us on Facebook and Twitter: AberdeenAAB.
Cautionary Note
Except for statements of historical fact contained herein, the information in this press release constitutes “forward-looking information” within the meaning of Canadian securities law. Such forward-looking information may be identified by words such as “plans”, “proposes”, “estimates”, “intends”, “expects”, “believes”, “may”, “will” and include without limitation, the implementation of the Company’s action plan, statements regarding the business activities of the Company and possible investment opportunities, the potential of certain investments, the ability of the Company to generate additional value for shareholders, past success as an indicator of future success. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, metal prices, competition, financing risks, acquisition risks, risks inherent in the mining industry, regulatory risks and other risks described in Aberdeen’s annual information form. Most of these factors are outside the control of the Company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the Company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.Contact Information:
Investor Inquiries:
Kingsdale Shareholder Services
North American Toll Free: 1-866-851-9601
International Collect Call: 416-867-2272
contactus@kingsdaleshareholder.com
For Media Inquiries:
Ian Robertson
Vice President, Communications
Kingsdale Shareholder Services
Direct: 416-867-2333 or Cell: 647-621-2646
irobertson@kingsdaleshareholder.com
Mike McAllister
Manager, Investor Relations
Aberdeen International Inc.
+1 416-309-2134
info@aberdeeninternational.ca
David Stein
President and Chief Executive Officer
Aberdeen International Inc.
+1 416-861-5812
dstein@aberdeeninternational.ca