NEW YORK, May 22 2014 /PRNewswire/ -- Lone Star Value
Investors, LP (together with its affiliates, "Lone Star Value" or
"we"), a significant shareholder of Antares Energy Limited (ASX:
AZZ) (OTC: AZZEF) ("Antares" or the "Company"), today unveiled a
plan to improve the Board of Directors of Antares by adding five
independent directors with extensive and deep experience relevant
to Antares' business.
Lone Star Value, which owns 6.0% of the outstanding shares in
Antares, today served the Company with a Notice requisitioning an
Extraordinary General Meeting ("EGM") of Antares' shareholders to
vote on the election of its five highly-qualified independent
director candidates. Lone Star Value believes that a
reconstituted Board is a critical first step to properly executing
on a long term growth strategy based on improved corporate
governance and a more rigorous approach to capital management and
asset development.
Lone Star Value is also seeking to remove two current directors
who have not enjoyed the full support of shareholders or proxy
advisers - Vicky McAppion and Greg
Shoemaker - and we note that at the last two annual meetings
it had been recommended that shareholders vote against their
reappointments. In his capacity as an employee Mr. Shoemaker
is Antares' Scientific Officer, therefore we believe there is a
conflict of interest between his role as an executive employee and
as a director. The appointment of five nominated truly independent
directors, whose roles would not be conflicted by employment
duties, will provide Antares with the board expertise it requires
going forward.
The Notice requisitioning the EGM was lodged today with the
company under section 249D of the Corporations Act. Lone Star Value
has developed a Five Point Plan which in its estimate can double
Antares' stock price if successfully executed. The
implementation and oversight of Lone Star Value's Five Point Plan
to maximize shareholder value require fresh perspective,
independence and the broad range of skill sets on the Board that
Lone Star Value's nominees possess.
Lone Star Value's Five Point Plan to maximize shareholder value
includes:
- Appointing new Directors with the appropriate financial,
operating and technical expertise
- Reviewing Antares' current strategy and exploring all strategic
alternatives
- Considering a potential share market listing in the US
- Lowering Antares' cost of capital
- Steadily increasing production through increased drilling
activity
Jeff Eberwein, founder of Lone
Star Value and a nominee stated: "We see tremendous intrinsic value
in Antares' shares that we believe the market continues to
discount. Clearly Antares' performance to date has been very
disappointing. We believe that we can bring about real change and
unlock value from the company's portfolio of oil and gas assets.
There has been a lack of transparency, poor communication
surrounding the failed sale of assets last year, a lack of board
independence and executive remuneration has been out of synch with
pay-for-performance. We are confident that significant value can be
unlocked under the stewardship of an enhanced Board overseeing a
strategically coherent plan. Our objective is to maximize
value for all shareholders."
Mr Eberwein reiterated a call for the incumbent Board not to
take actions adverse to the best interests of the Antares
shareholders prior to the EGM, such as: issuing equity or
equity-linked securities (specifically further convertible debt
offerings); being uncooperative or hindering Lone Star Value in
calling this EGM; agreeing to sell material assets of the Company
(including any of its projects); making material acquisitions,
forming joint ventures, or adding any further members to the Board
prior to the EGM.
Shareholders will be advised in coming days about the date for
the EGM and Lone Star Value will continue to provide shareholders
with updated information about its proposed turnaround
strategy.
Shareholders can also seek additional information via the
shareholder helpline on 1300 889 468 or if calling from outside
Australia +61 2 8022 7902. Or by
visiting www.antaresvalue.com.au.
For media enquiries please contact:
John Hurst
Cannings Corporate Communications
+61 418 708 663
SOURCE Lone Star Value Management, LLC