TORONTO, July 09, 2020 (GLOBE NEWSWIRE) -- Dealnet Capital Corp. (TSX VENTURE: DLS) (“Dealnet” or the “Company”). The Concerned Shareholders of Dealnet (Capital Partners Corporation (“Capital Partners”) and Municipal Home Service Inc. (“MHS”)) are astounded that Dealnet and the entrenched board of directors issued yet another misleading “optimistic” press release on July 8, 2020 titled “Dealnet Announces Rebounding Originations”. In its release, Dealnet announced organic originations of finance receivables for the quarter ended June 30, 2020 were $6.4 million, which amounts to less than half of the $12.9 million of originations of the Company in Q2 2019. The Company’s claim that originations “rebounded” to $3.6 million in June without providing fulsome June 2019 results is distorted and the Concerned Shareholders are increasingly alarmed that the Company is disclosing selected facts intended to mislead and misdirect shareholders. “This is a dismal performance given that we are in one of Canada’s longest heat waves in decades and the industry is thriving with Heat Pumps and Air Conditioners selling out across the country and industry peers experiencing impressive growth and performance despite the COVID-19 pandemic,” said industry expert, President of MHS and concerned shareholder, Shail Silver.
Despite unquestionable and ongoing failure, Dealnet’s directors continue to reward themselves with outlandish compensation. Remarkably, Dealnet’s CEO Brent Houlden is apparently planning for his next chapter as he took a position on the board of directors of TSX-listed Extendicare Inc. on May 28, 2020 with over 28% of shareholders demonstrating their disapproval by withholding their vote to approve his appointment. As a director of Extendicare, a company with a market capitalization of approximately $500 million, Mr. Houlden is expected to earn $50,000 per year. The glaring contrast is seen at Dealnet, a company with a market capitalization of approximately $17 million, where Mr. Houlden received aggregate compensation valued at $953,242 and Chairman Harold Bridge earned $193,894 and the lowest compensated director earned $110,234 in 2018 – the last year where such information is currently available due to Dealnet’s self-serving delay of its annual meeting of shareholders and release of 2019 executive compensation disclosure. The Dealnet directors’ lack of transparency, failed performance, excessive compensation and continuing inability to grow the business and produce real profits continues to erode shareholder value.
The Concerned Shareholders expect the entrenched directors to continue their campaign of misleading optimism in defence of their dismal performance. “We have a clear plan including to immediately renew destroyed relationships, aggressively reduce director and executive compensation and put the Company on a true path of growth and substantive profitability that is reported transparently. We are eager to share our vision and comprehensive plan to save Dealnet once a formal notice of the meeting is delivered. We see tremendous opportunities for Dealnet and have the talent, experience and contacts to deliver exceptional results. The shareholder meeting should have already been held, September 22, 2020 cannot come soon enough,” concluded Dr. Steven Small, CEO of Capital Partners.
The information contained in this news release does not and is not meant to constitute a solicitation of a proxy within the meaning of applicable securities laws. Shareholders are not being asked at this time to execute a proxy in favour of the nominees of the Concerned Shareholders. In connection with Dealnet’s annual general and special meeting of shareholders, the Concerned Shareholders may file and mail a dissident information circular in due course in compliance with applicable securities laws.
Forward Looking Statement
This news release contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. All statements and information, other than statements of historical fact, included herein are forward-looking statements, including, without limitation, statements regarding activities, events or developments that the Concerned Shareholders expect or anticipate may occur in the future. These forward-looking statements can be identified by the use of forward-looking words such as “may”, “will”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “believe” or “continue” or similar words and expressions or the negative thereof. There can be no assurance that the plans, intentions or expectations upon which these forward-looking statements are based will occur or, even if they do occur, will result in the performance, events or results expected. We caution readers not to place undue reliance on forward-looking statements contained herein, which are not a guarantee of performance, events or results and are subject to a number of risks, uncertainties and other factors that could cause actual performance, events or results to differ materially from those expressed or implied by such forward-looking statements.
Readers are cautioned that all forward-looking statements involve known and unknown risks and uncertainties, including those risks and uncertainties detailed in the continuous disclosure and other filings of Dealnet, copies of which are available on the System for Electronic Document Analysis at www.sedar.com. We urge you to carefully consider those risks and uncertainties. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. Unless expressly stated otherwise, the forward-looking statements included herein are made as of the date of this news release and the Concerned Shareholders disclaim any obligation to publicly update such forward-looking statements, except as required by applicable law.
Contact Information
Dr. Steven Small
(647) 699-5066
ssmall@cpcorp.ca