TORONTO, July 15, 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.) are disappointed that the entrenched board of directors of Dealnet (the “Board”) continue to mislead shareholders with inaccurate and distracting “news” while deliberately neglecting important facts. In press releases issued on July 9, 2020 and July 13, 2020 the incumbent directors have yet again demonstrated their plan to selectively disclose certain information in a transparent attempt to misdirect shareholders. Rather than address legitimate shareholder concerns, the Board has instead attempted to discredit the Concerned Shareholders in order to retain their lucrative positions in the face of non-performance.
As noted in Dealnet’s press release of July 13, 2020, Dealnet has retained new high-priced legal counsel and one of Canada's leading independent communications & public affairs company, each at the expense of Dealnet’s shareholders. Given Dealnet’s declining financial position, the Concerned Shareholders are stunned that the Board would use shareholder dollars to retain expensive advisors to produce slick press releases designed to influence shareholders against the Concerned Shareholders. The expected cost of these engagements was not disclosed by Dealnet. The Concerned Shareholders expect Dealnet to continue to spend hundreds of thousands of shareholder dollars in an ongoing barrage of misinformation crafted by their advisors now that the Board has seemingly turned over the reins rather than communicate for themselves.
The Concerned Shareholders urge the incumbent directors to stop frivolously spending scarce shareholder funds towards their own self-interest. Moving the Dealnet head office to The Exchange Tower in downtown Toronto, one of the most expensive addresses in Canada, is yet another example of poor and self-interested management. “The points cited in Dealnet’s release of July 13th are full of half-truths and inaccuracies. Their attempts to discredit us will be easily disproven and addressed in advance of the upcoming shareholder meeting. The Board knows their dismal results cannot stand up to criticism and they cannot win on facts. They have wasted shareholder time and money to delay the meeting, replace their lawyers and hire an expensive communications firm while simply delaying the inevitable,” said Dr. Steven Small, CEO of Capital Partners.
The Board’s attempt to discredit the Concerned Shareholders and blame a lack of performance on Dr. Small’s legacy is consistent with their track record of making excuses and blaming others for the current state of the Company. Dealnet’s CEO Brent Houlden and Chair Harold Bridge were independent directors at the time Dr. Small initially joined the Dealnet board of directors. Now that Mr. Houlden has assumed the CEO position and Mr. Bridge has assumed the role of Chair, they attempt to evade responsibility, ignoring the fact that they approved all decisions that they now attempt to attribute to Dr. Small’s legacy. The Concerned Shareholders expect the incumbents to continue to selectively spew self-serving facts and misdirect shareholders by blaming Steven Small for “legacy issues”. Since Dr. Small’s departure, the Board has led the Company’s share price to plummet by over 50%, while enriching themselves with millions of dollars in aggregate remuneration.
Despite the Board’s misleading “positive” spin on news, Dealnet flounders as a mismanaged orphaned penny stock with no liquidity, a stagnant share price below book value, no institutional coverage or support, a dwindling real net portfolio value, failed non-core “consumer initiatives”, disenfranchised stakeholders, a lack of industry experience and inexcusable expenses including egregious director and executive compensation.
“Shareholder demands for true, transparent and meaningful news and progress has fallen on deaf ears. We are excited to share our plan to save Dealnet and looking forward to meaningful and material progress, substantial growth of originations, robust marketing, restored reputation and relationships, capital markets recognition and support, and real profits so growth and earnings per share drive value, share price appreciation and liquidity. Dealnet is not just attacking the Concerned Shareholders when we demand accountability and positive change, they’re attacking all shareholders,” concluded Dr. Small.
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