VANCOUVER, British Columbia, Aug. 08, 2019 (GLOBE NEWSWIRE) -- A group of shareholders of Select Sands Corp. (“Select Sands” or the “Company”) (TSXV: SNS | OTCQB: SLSDF) led by John LaGourgue (the “Concerned Shareholders”) are demanding change, starting with the election of a new Board of Directors at the Company’s currently scheduled annual general meeting (the “AGM”).
The Concerned Shareholders believe that current management has not done what needed to be done in order to curb the Company’s high burn rate, low sales volume and low share price – the Concerned Shareholders believe that these objectives are critical to the Company’s survival, especially now when the Company and frac sand industry in general are in a down-cycle and there is a significant oversupply of Northern White sand. The Concerned Shareholders believe that, without immediate and decisive action to address the current ratio of income to expense, the Company will run out of money before the end of the year. This is not in the best interest of the Company or its shareholders.
The Concerned Shareholders believe that the Company should be run differently and that the Nominees have the credentials and the will to do so. The Concerned Shareholders want to help the Company increase shareholder value by cutting costs and looking at strategic alternatives (including the current business)Although the current board and management are aware of the gravity of the situation, they have failed to cut costs (consisting primarily of management fees) or take other decisive action to save the Company, and the Concerned Shareholders have decided that it is in the Company’s best interest to downsize and replace the current Board of Directors at the Company’s upcoming AGM, which is currently scheduled for August 15, 2019.
At the AGM, the Concerned Shareholders plan to ask the shareholders of the Company to reduce the number of directors from six to three, and to elect John LaGourgue, Rasool Mohammad and Scott Kelly as directors of the Company (collectively, the “Nominees”).
About the Nominees:
Mr. LaGourgue has a broad range of business experience in multiple industries, both public and private. He has served as President and Director for several companies in mining, oil and gas and in executive positions covering sales, financing options, purchasing and logistics, operational and technical solutions for clients across North America. He is currently VP Corporate Development and serving on the board of Grande West Transportation Inc., and is an avid micro-cap investor and MicroCapClub member. Mr. LaGourgue has an investing and capital markets career with 20+ years of management, sales, financial and investment experience in public and private companies. Mr. LaGourgue has served in various management and directors’ roles in micro-cap companies from 2009 to present. Mr. LaGourgue graduated from the University of Hawaii in 1993 with a Bachelor’s degree in Finance, with honours. Mr. LaGourgue owns 300,000 shares of the Company.
Mr. Kelly has been an officer or director of both private and public resource companies for over 15 years. Mr. Kelly has held the position of officer for companies with resource projects in the United States, Mexico, China and Chile and has been responsible for the coordination of all financial operations in collaboration with the companies' respective management teams. Mr. Kelly holds a Bachelor of Commerce degree from Royal Roads University. Mr. Kelly does not own any shares of the Company.
Mr. Mohammad needs no introduction. Until very recently, he was a director and senior officer of the Company. After becoming aware of shareholder concerns about the Company’s high burn rate, he attempted to persuade management that it should initiate cost-cutting measures. After it became clear to him that management was not to be persuaded, he resigned and joined the Concerned Shareholders in their effort to reset management. Mr. Mohammad has worked in the mining and mineral exploration industry throughout the Americas. He is the founder of Select Sands and worked as a CEO and COO for the Company; he recently resigned from his positions with Select Sands in order to join the team of Concerned Shareholders in an effort to effect change in the Company. He graduated from the NWFP University of Engineering and Technology, Peshawar, Pakistan in 1991 with a B.Sc. (Mining Engineering). He has over 20 years of work experience in the mining and mineral exploration industry. Mr. Mohammad owns 1,664,500.
The Concerned Shareholders are not soliciting proxies with this news release. Any proxies solicited by the Concerned Shareholders will be solicited pursuant to a dissident information circular filed on SEDAR.
For further information, please contact Rasool Mohammad at 1-604-868-7737.