Australis Capital Inc. (CSE: AUSA) (OTC: AUSAF) (“AUSA” or the “Company”) announced today that Glass, Lewis & Co., LLC (“Glass Lewis”), a leading independent international corporate governance analysis and proxy advisory firm, has recommended that its clients vote FOR all Australis Director nominees using only the BLUE proxy at the upcoming Annual General and Special Meeting of Shareholders (the “Meeting”). This is the second recommendation that shareholders vote using on the BLUE proxy, following a similar recommendation from Institutional Shareholder Services (“ISS”) last week.
Glass Lewis made its recommendation after reviewing the arguments made by a group of dissident shareholders led by Terry Booth, Roger Sykes, Jason Dyck and others with deep connections to Aurora Cannabis Inc. (collectively, the “Dissidents”), and contrasting it with disclosure from AUSA. After carefully considering the outcome that is in the best interests of the Australis Capital shareholders, Glass Lewis recommended that its clients vote FOR all Australis Director nominees using only the BLUE proxy, and noted the following:
- Overall, we do not believe the Dissident has presented a credible and convincing case in favor of board representation at this time.
- We are concerned the Dissident may be attempting to gain control of the Company for self-serving purposes, and we find that it has nominated a slate of candidates with various connections and questionable independence and, in the case of Mr. Fu, with clear conflicts of interest due to his role in outstanding litigation against the Company.
- We find that the Management Nominees are well qualified to oversee the Company, and we are encouraged by the board’s recent steps to refresh the board and management and to set the Company on a new strategic course that both sides appear to support and that appears generally reasonable, in our view.
“We are pleased with Glass Lewis’ independent recommendation that shareholders vote using the BLUE proxy for all of our Board Nominees,” said Harry DeMott, CEO of AUSA. “I find it gratifying that Glass Lewis has seen fit to call out the enormous conflict of interest that putting Duke Fu on the board would represent. Asking shareholders to sign over a blank check without knowing who will fill in the amount simply makes no sense. Given the support we have already seen from shareholders and the recommendation for management by ISS last week, we are confident that they recognize the danger posed by the Dissidents and that they will continue to protect their interests in AUSA by voting for our Directors on the BLUE proxy. We are 100% behind ALL of our Directors and look forward to working with them to build a business.”
Proxy Voting Instructions
It’s up to shareholders to protect the value of their investment in Australis by voting FOR the AUSA slate of director nominees, using only the BLUE proxy. In order to ensure the BLUE proxy is counted at the Annual & Special Meeting of Shareholders, please ensure it is received well in advance of the proxy cut-off of Friday, November 13, 2020 at 11:30 a.m. Mountain Time.
For more information or assistance voting the BLUE proxy, please contact the Company’s proxy solicitor, Gryphon Advisors Inc. at 1-833-490-0586 or by email at firstname.lastname@example.org. Additionally, for up to date information and ease of voting shareholders are encouraged to visit www.ausa-corp.com and click on the “Vote Now” button to cast your vote.