Equal Energy Says "Committed to Balanced, Prudent Strategy"; Rejects Dissidents' "Reckless" Demands
Equal Energy Ltd. (EQU.TO) said it was reasserting its commitment to a "prudent and balanced" long-term strategy in the face of "reckless" demands by two dissident shareholders and bloggers that risk jeopardizing the company's long-term stability.
"Our recently-completed strategic review seeks a balance between future growth and return of capital to shareholders", Don Klapko, Equal's President and Chief Executive Officer, said. "By contrast, the dissidents' demands are more short-sighted, and not in the interests of long-term financial stability and sustainable valuation for our shareholders."
Klapko added: "We have worked in good faith over several months to engage the dissidents, Mr. Nawar Alsaadi and Dr. Adam Goldstein. They continue to show little understanding of the opportunities and risks in the natural-gas business, or of Equal's operations and financial capabilities. Mr. Alsaadi and Dr. Goldstein appear to be active financial bloggers with little experience in running a public company which, unlike social media, operates in a regulated environment and requires a higher level of responsibility."
Dan Botterill, Equal's Chairman, said: "Some of Mr. Alsaadi's and Dr. Goldstein's demands would restrict the board from exercising its fiduciary duty to shareholders. We wish to assure all our shareholders that we will remain accountable to them, and not to a minority of voices interested only in financial engineering."
Equal responded specifically to several demands and "misleading" allegations made by the dissidents in their press release dated November 29, 2012.
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