On April 24, 2024, ThreeD Capital Inc announced its intention to unlock value for shareholders of Birchtree Investments Ltd. (CSE) by requisitioning a meeting to replace its current board of directors. ThreeD, which holds approximately 15% of Birchtree's issued shares, expressed that its concerns regarding the lack of transparency and poor corporate governance are shared by other significant shareholders. They highlighted a recent ?share swap?
transaction with Valkyrie Specialty Corporation that included a Cdn$499,500 cash payment and the issuance of 5,000,000 shares, leading to a 60% decrease in Birchtree?s share value. Governance issues were also raised, including potential conflicts of interest involving CEO Vitali Savitski, unserviced indebtedness, misalignment of management interests with those of shareholders, and the lack of an annual meeting. Despite efforts to address these concerns, Birchtree?s management dismissed them, leading ThreeD to call for a vote of WITHHOLD on all management nominees: Vitali Savitski, James Greig, Andrew Lindaon and Ivan Riabov and against the Management Reward Plan at the upcoming annual meeting on May 7, 2024.
ThreeD aims to reconstitute the board with four experienced nominees post-meeting to maximize Birchtree?s investments and is also considering an oppression action to protect shareholder value.
