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Kulwant Malhi and BullRun Capital Obtain Court Order to Solicit Proxies and Announce Shareholder Nominees to Replace GrowMax Board


Kulwant Malhi and BullRun Capital Obtain Court Order to Solicit Proxies and Announce Shareholder Nominees to Replace GrowMax Board

Canada NewsWire

VANCOUVER, Aug. 31, 2018 /CNW/ - Kulwant Malhi and BullRun Capital Inc. (the "Concerned Shareholders") announced today, that the Concerned Shareholders received an exemption order from the Alberta Securities Commission (the "Order") which permits the Concerned Shareholders to solicit proxies by broadcast, speech or publication without sending an information circular to each GrowMax Resources Corp. ("GrowMax" or the "Corporation") (GRO:TSX-V) shareholder. The Order also permits the Concerned Shareholders to make non-public solicitations to not more than 15 GrowMax shareholders.  The Concerned Shareholders intend to file and mail a dissident proxy circular in the days to follow in order to provide shareholders of GrowMax with a choice.

The Concerned Shareholders hold in aggregate 28,211,000 common shares of GrowMax, representing more than 13% of the outstanding shares of the Corporation.

Director Nominees

The Concerned Shareholders are also pleased to announce their proposed board of director nominees for the Corporation's upcoming annual and special meeting currently scheduled for September 25, 2018 -  Kulwant (Kal) Malhi, Alfred Wong, Michael Sadhra and Bala Pratap Reddy Udumala (Pratap Reddy), to serve as directors of the Corporation (the "Concerned Shareholder Nominees"). The Concerned Shareholder Nominees have complementary backgrounds and experiences needed to steer GrowMax forward in the right direction.

  • Kal Malhi: Mr. Malhi is a Canadian entrepreneur, businessman and retired member of the Royal Canadian Mounted Police. He is the Founder, Director and Chairman of Bullrun Capital Inc. and has been instrumental in raising capital for various projects totalling in excess of $150 million dollars since 2008. Mr. Malhi specializes in working with academia and advances in technology and funded academic research that has potential for commercialization through private and public companies. He has extensive experience in the biomedical, agriculture, and technology sectors.  Recently, Mr. Malhi has been the founder of highly successful  Canadian publicly traded companies including  Cannabix Technologies Inc CSE:BLO, Patriot One Technologies Inc V.PAT and Micron Waste Technologies Inc C.MWM.  Mr. Malhi, thru his private holding company BullRun Capital Inc also holds positions in several private early stage companies that are expected to obtain public listings in 2019.

  • Alfred Wong: Alfred is an experienced business professional with experience in the capital markets and technology industries. He is currently President of Micron Waste Technologies (MWM:CSE) and VP Corporate Development at Breathtec Biomedical Inc (BTH:CSE). From 2014-2016, Alfred was the CEO & General Manager of a environmental waste logistics company with operations in the Asia Pacific. Mr. Wong is the Principal at Alfred and Company where he consults with early stage start-up companies on development of business plans, recruiting management, negotiating transactions, joint ventures and supporting all company development initiatives. Alfred is a mentor at Spring University, a start-up school with locations in 30 countries around the globe and currently sits on the Economic Advisory Committee for the City of Richmond, British Columbia.

  • Michael Sadhra: Mr. Sadhra serves as the Chief Financial Officer of Micron Waste Technologies (MWM:CSE) and Chief Financial Officer and Director of Breathtec Biomedical Inc. (BTH:CSE), Interim Chief Financial Officer and Director of Khan Resources Inc. (KRI:CSE) and Director of Cairo Resources Inc. and is currently a Tax Partner at Sadhra & Chow LLP. Mr. Sadhra has served as the Chief Financial Officer of several public companies including Cairo Resources Inc. (QAIP:TSX-V), Reservoir Capital Corp. (REO:TSX-V) and Lara Exploration Ltd. (LRA:TSX-V) and was a former Senior Tax Manager at KPMG LLP where he specialized in Canadian and international taxation for mining companies. Mr. Sadhra holds a Bachelor of Commerce from the University of British Columbia and is a Chartered Professional Accountant.

  • Pratap Reddy: Pratap Reddy is a strategic consultant to the management and board of directors of Canadian Zeolite Corp. He is also the Chief Executive Officer of Ichaana Indo-Can Zeolite Private Limited, an Indian company focused on introducing various products of natural zeolite to the Indian agriculture and farming sectors. Mr. Reddy has been working in the resource industry as a geologist for over 20 years and has extensive knowledge in the global agriculture and farming sectors. He is currently involved in various potash projects in Canada and the United States.

The nominations and related information were provided to GrowMax on August 21, 2018, well in advance of the cutoff date for delivery of nominations in advance of the Annual Meeting and Special.

GrowMax's Questionable Proposed Transaction

When GrowMax had the trading in shares of GrowMax halted for more than a week without explanation to its shareholders, the Concerned Shareholders had hoped management would announce a transaction which would greatly benefit all shareholders of GrowMax. Unfortunately, the announcement is not as "transformative" as GrowMax alludes it to be. The targeted company Primasea Holdings' is the owner of a money losing operation, with a significant working capital deficiency and insufficient resources to carry out its business plan. There are significant flaws with the proposed transaction and shareholders will likely see the value of their investment decrease even further. This only reinforces the need for change. The Concerned Shareholders will provide more details in its voting materials and shareholders are encouraged to read the materials once it is available, prior to casting any vote.

SOURCE BullRun Capital Inc.

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