A group of dissident GrowMax Resources Corp. shareholders is seeking to replace the company's board during its annual and special meeting scheduled for Sept. 25.
The shareholders, Kulwant Malhi and BullRun Capital Inc., collectively hold 28,211,000 GrowMax shares, representing more than 13% of the company's share capital.
According to the group, GrowMax's all-scrip acquisition of Brazilian fertilizer producer Primasea Nutrição Animal e Vegetal is not as "transformative" as the company alludes it to be, given that the target firm is the owner of a money-losing operation.
"There are significant flaws with the proposed transaction and shareholders will likely see the value of their investment decrease even further," the shareholders said.
The group will nominate Malhi, Alfred Wong, Michael Sadhra and Pratap Reddy as new directors, according to an Aug. 31 release.