CALGARY, ALBERTA -- (Marketwire) -- 05/29/12 --
After giving the matter due consideration, the Board of Directors of Petro-Reef Resources Ltd. (TSX VENTURE:PER) ("Petro-Reef" or the "Company") announces its decision to postpone the Company's Annual and Special Meeting from June 7, 2012 at 3:00 pm to July 4, 2012 at 3:00 pm at the Calgary Petroleum Club, 319 - 5th Avenue SW, Calgary, Alberta, T2P 0L5.
The postponement was made necessary as a result of the dissident proxy circular filed by Cavalon Capital Corp. on May 22nd, 2012 without any advance notice to Petro-Reef's Board and just 12 days before the scheduled Annual and Special Meeting. The Board considers itself bound by its fiduciary obligations to ensure that shareholders of Petro-Reef have enough information before them to make an informed decision. Shareholders require more time to receive, evaluate and react to important information from both the Company and the dissidents. The Board believes that postponing the Annual and Special Meeting for a short period is reasonable, and in the best interests of the Company and its shareholders for a number of reasons, including:
-- The Company released its First Quarter results and positive results of
the Company via press release on May 28, 2012. Receipt of this important
information by shareholders cannot be guaranteed ahead of the deadline
for proxy filing by some non-registered shareholders.
-- The Company has informed the dissident that its proxy circular did not
include sufficient information to permit the shareholders to make a
reasoned decision, and also did not include clear viable and binding
indications of their financing commitments.
-- The dissidents' proxy circular was not specific on operating and
financial projections and plans. The Company has asked the dissident to
release detailed operating and financing information and plans to
shareholders so that it may be compared to the Company's information.
-- Postponing the Annual and Special Meeting does not affect any
shareholders' rights. Any shareholders who intend to vote against the
directors proposed by the Petro-Reef Board are still entitled to do so.