Sherritt Responds to Purported Calling of Special Meeting of Shareholders

Sherritt International Corporation has formally rejected Kyma Capital Limited’s attempt to call a special shareholder meeting for September 29, 2026. The company declared the requisition invalid, citing its own scheduled combined annual and special meeting for December 15, 2026.

Kyma Capital is initiating court proceedings to force the September date, with a case conference set for August 19, 2026. The December 15 meeting date was selected to accommodate ongoing discussions with Gillon Capital LLC regarding a potential private placement and to facilitate the appointment of a new external auditor. Management warns that Kyma’s aggressive public campaign could jeopardize critical strategic initiatives and ongoing negotiations.

Sherritt International Corporation released a procedural governance rebuttal on August 18, which serves as a legal response rather than a fundamental operational or financial update. The market has already priced in the operational suspension, the second-quarter earnings miss, and the competing recapitalization proposals, including the Kyma consortium’s offer at $0.12 and the Gillon Capital warrant structure.

The stock’s recent movement from $0.25 to $0.39 reflects speculative positioning surrounding the recapitalization battle and activist involvement, rather than any improvement in operating fundamentals. This release introduces additional legal and governance friction to an already complex capital-raising process but does not alter the company’s going concern status, liquidity constraints, or operational halt.

Sherritt International Corporation operates a diversified portfolio of assets, primarily centered on nickel and cobalt mining and processing through its Moa Joint Venture in Cuba. Operations at the Moa site are currently suspended due to U.S. sanctions and fuel supply disruptions. The company also owns a 33% stake in Energas S.A., the largest independent power producer in Cuba. Energas continues to operate using domestic natural gas, and Sherritt’s dividends from the entity doubled to $26 million in 2025.

In Canada, the Fort Saskatchewan Refinery handles nickel and cobalt refining, fertilizer production, and sulphuric acid generation. The facility transitioned to a controlled shutdown on June 22, 2026. Additionally, Sherritt is winding down its Legacy Oil & Gas Assets in Spain, recognizing a $36.1 million environmental rehabilitation cost update in the second quarter of 2026. The Canadian-headquartered company maintains significant exposure to Cuban jurisdiction and U.S. regulatory frameworks.