Coloured Ties slams Labrador Gold proxy vote threat

Executive Summary

• Coloured Ties Capital Inc., a major shareholder of Labrador Gold Corp., has publicly condemned Labrador Gold’s alleged attempt to disenfranchise shareholders by threatening to disregard or not count dissident proxy votes.
• The release characterizes Labrador Gold’s actions as a "shameful attempt" to intimidate shareholders, undermine corporate governance, and entrench current management rather than address performance issues.
• Coloured Ties urges shareholders to vote the "gold proxy" or "gold VIF" to effect change at Labrador Gold and has retained Advisense Partners to assist shareholders with voting and to defend their legal rights.

Key Details

• Parties Involved: Coloured Ties Capital Inc. (along with concerned shareholders Kal Malhi and Rauni Malhi) vs. Labrador Gold Corp.
• Core Allegation: Labrador Gold has made statements suggesting that shareholder votes cast on the gold proxy "may" not be counted. Coloured Ties views this as a "blatant attempt to intimidate shareholders" and a "flimsy technical argument."
• Accused Tactics:
  • Disenfranchisement: Falsely suggesting lawful dissident proxy votes may not be counted or will be counted at management's discretion.
  • Entrenchment over accountability: Clinging to power by undermining shareholder choice and spending shareholder cash on legal strategy to deny votes.
  • Misleading tactics: Casting doubt on dissident proxy cards to confuse investors and suppress independent voting.
• Strategic Response: Coloured Ties intends to take "all action necessary to enforce the rights of all shareholders and uphold shareholder democracy" if votes are denied.
• Call to Action: Shareholders are urged to vote the "gold proxy" or "gold VIF" to reconstitute the board and address "disastrous past performance, reckless future gambles and complete disregard for shareholder democracy."
• Advisory Support: Shareholders requiring assistance with voting can contact Advisense Partners, Coloured Ties' strategic adviser, via phone (1-866-207-4819 in North America; 1-437-783-3139 outside North America) or email ([email protected]).

Notable Quotes

• "Coloured Ties Capital Inc., one of the largest shareholders of Labrador Gold Corp., together with Kal Malhi and Rauni Malhi (the concerned shareholders), has strongly condemned recent statements by Labrador suggesting that shareholder votes cast on the gold proxy 'may' not be counted, calling the maneuver a blatant attempt to intimidate shareholders and undermine the integrity of the corporate governance process."
• "The threat is clear; if they lose, they will refuse to count votes against them."
• "Rather than defending its record, the company is attempting to cling to power by undermining shareholder choice and spending more of shareholder cash on flimsy legal strategy and using legal tactics to deny votes against them."
• "Only by reconstituting the board can a repeat of the disastrous past performance, reckless future gambles and complete disregard for shareholder democracy be avoided."