08:18:14 EDT Wed 24 Apr 2024
Enter Symbol
or Name
USA
CA



Aberdeen International Inc
Symbol AAB
Shares Issued 87,349,422
Close 2014-11-21 C$ 0.16
Market Cap C$ 13,975,908
Recent Sedar Documents

Aberdeen Int'l holder Meson to fight "predatory" conduct

2014-11-24 16:11 ET - News Release

Mr. Ryan Morris of Meson Capital reports

MESON CAPITAL COMMITS TO IMPROVING GOVERNANCE AT ABERDEEN INTERNATIONAL - INTENDS TO ELIMINATE "HEADS: INSIDERS WIN, TAILS: SHAREHOLDERS LOSE" PATTERN OF BEHAVIOUR

Meson Capital Partners LLC, an adviser to funds representing approximately 9 per cent of the shares of Aberdeen International Inc., has committed to improving the governance of the company. This follows Aberdeen's announcement today that it has closed its dilutive private placement to insiders despite a superior, less dilutive binding offer from Meson -- an action Meson believes is a clear breach of fiduciary duty by the company.

Meson intends to use all procedural and legal tools available to it in order to effect change for the benefit of all shareholders. Meson's preferred approach would be to effect change in co-operation with Aberdeen management as it has done in numerous previous situations, including cases where the majority of the board was changed. Unfortunately, repeated attempts to communicate privately to date have been rebuffed.

In fact, instead of communicating with Meson as the company had indicated it would on Nov. 18, Aberdeen released a misleadingly titled press release on Nov. 20 that attacked the legitimacy of Meson's superior offer (an offer Meson had made on five separate occasions). The Nov. 20 release additionally confirmed Meson's concerns of insider participation in the pending private placement, and questionable director overlap with African Thunder Platinum Ltd. and its parent company, Great Lakes Capital. Interestingly, the website describing Great Lakes as an "affiliate of Aberdeen International" was mysteriously taken down recently.

This discounted placement to insiders is unfortunately just the latest example of Aberdeen's poor and often predatory conduct toward public shareholders that are often unfamiliar with the nuances of its deal structures.

Meson intends to eliminate Aberdeen's historical "heads: insiders win, tails: shareholders lose" pattern of behaviour: Aberdeen shares have declined over 80 per cent since Jan. 30, 2011, as shareholders have accumulated net losses of $98-million, yet insiders have been compensated a staggering $13-million since that time. Meson continues to investigate no fewer than six loans made by Aberdeen to related parties that have been substantially written off. In other cases, such as with a loan to Forbes Royalty Corp., deals appear to have been structured so unfavourably that it is questionable that truly independent directors would have accepted such asymmetric terms contrary to Aberdeen's interests.

Meson has contacted the appropriate regulatory bodies, providing them with relevant research so that these regulators can investigate the current pending transactions that Meson believes are extremely value destructive and serve to disenfranchise shareholders. Next steps in Meson's plan to improve governance at Aberdeen will be announced in the coming days. Meson believes that Aberdeen's stock is significantly undervalued relative to its assets, and intends to take whatever action is necessary to fix this problem as soon as possible.

We seek Safe Harbor.

© 2024 Canjex Publishing Ltd. All rights reserved.