Thanks Shareholders for Recognizing the Issues and Opportunities at Crescent Point
Calls on Board to Embrace Clear Demand for Change and Take Immediate Steps to Enhance Governance, Align with Shareholders and Focus on Unlocking Value
CALGARY, Alberta–(BUSINESS WIRE)–$CPG #CationCapital–Cation Capital Inc. (together with its affiliates and associates, “Cation Capital” or “Cation”), a private investment firm and shareholder of Crescent Point Energy Corp (TSX/NYSE: CPG) (“Crescent Point”), today issued the following statement based on its analysis of the voting results of Crescent Point’s 2018 Annual General Meeting of Shareholders.
Sandy L. Edmonstone, President of Cation Capital, said:
“We would like to thank the significant number of shareholders that supported our campaign for change by either voting for our nominees or by withholding on the company’s director nominees. Whether gauged by the significant votes cast for our nominees or by the 30% rise in the share price from the time we announced our campaign until last week, shareholders of Crescent Point clearly recognize the same issues and opportunities that we do.
“Consistent with the questionable decisions made by the company during the course of this proxy contest, Crescent Point decided to omit the number of votes withheld on the company’s directors from their press release announcing the annual meeting results. What they don’t want shareholders to know is that four of their nominees – Rene Amirault, Peter Bannister, Mike Jackson, Gerald A. Romanzin – ultimately had a substantial number of votes withheld against them. Add another failed ‘Say On Pay’ vote that only received 38.5% support, and you begin to understand the vast shareholder frustration regarding the leadership of this company. We once again urge the company to live up to its claims of transparency and publicly disclose the votes withheld for each of its nominees.
“In our free-market system, companies and their boards must ultimately answer to their owners, and Crescent Point is no different. I am hopeful that after witnessing shareholders’ reaction to our campaign for change, the current board and management will take a look in the mirror and realize what we saw at the outset – the status quo is indefensible. Following a further round of now predictably disappointing quarterly financial results and the shareholder dissatisfaction expressed at the AGM, we can only hope that this board now sees the need to abandon the status quo and begin anew with a focus on shareholder value creation. I hope the board also remembers that accountability to shareholders does not end with this year’s vote. They must also realize that whispered promises to shareholders ultimately come due.
“I would like to express my gratitude to all of the Crescent Point shareholders who spent the time to engage with us, to thoroughly evaluate our campaign materials and to vote for our nominees. I must also deeply thank my fellow nominees. Dallas Howe, Herb Pinder and Tom Budd are consummate professionals whose motivation throughout had been to make Crescent Point a great Canadian oil company once again.
“We at Cation look forward to a continued dialogue with all Crescent Point shareholders. We remain committed to working constructively to unlock value, for the benefit of all shareholders, and will actively monitor our investment and exercise our rights accordingly.”
About Cation Capital Inc.
Cation Capital Inc., together with its affiliates and associates, is a private investment firm headquartered in Alberta, Canada. Cation invests in situations where it is able to influence operational, financial and strategic direction. Cation seeks value in companies that are experiencing financial or operational challenges, are in out of favour sectors or are otherwise in need of change to drive significant long-term value for stakeholders.