CF Energy Responds to Dissident Misrepresentation Regarding Gas Price Policy
TORONTO, Oct. 23, 2020 (GLOBE NEWSWIRE) -- In connection with the annual meeting of shareholders of CF Energy Corp. (TSX-V: CFY) (“CF Energy” or the “Company”) to
be held on October 29, 2020 (the “Meeting”), the dissident shareholder 11882716 Canada Inc. (the “Nominating Shareholder”) has filed a dissident proxy circular dated October 14,
2020 (the “Dissident Circular”) and issued a press release dated October 16, 2020 (the “Dissident Press Release”).
In the Dissident Press Release, the Nominating Shareholder and Dissident Nominees attempt to further mislead shareholders by alleging that the Company has not complied with the PRC Central Government’s natural gas price reduction policies. This allegation is false, and demonstrates that the Nominating Shareholder and Dissident Nominees do not understand the regulation of pricing in the Chinese natural gas industry.
As disclosed by the Company in its July 23, 2020 press release, natural gas pricing for residential and non-residential customers is not set by operators such as the Company, but by local provincial and city regulators. The Company is in compliance with the natural gas utility pricing requirements of its local regulator, the Sanya City Development and Reform Commission (“SYDRC”), which are established taking into account the natural gas price reduction policies of China’s National Development and Reform Commission (“NDRC”). The Company recognized the negative impact of the price change and filed a Material Change Report on July 23, 2020.
The extent and timing over which price reductions will be required by the SYDRC is uncertain, and as they are not within the Company’s control, cannot be quantified as the Dissident Press Release suggests. As stated in the Company’s July 23, 2020 press release, the price will be likely adjusted every six (6) months. The Company will make further disclosure if there are any material changes.
The Dissident Nominees’ false allegations demonstrate that they do not understand the Chinese natural gas industry, and do not have the experience or expertise to lead the Company.
Shareholders are encouraged to read the Company’s Management Information Circular dated September 25, 2020 (the “Circular”) and press releases available at www.sedar.com.
Your vote has never been more important, please take the time to vote using only Management’s form of WHITE proxy or WHITE voting instruction form “FOR” the re-election of the Company’s existing directors in advance of the Meeting. Please disregard any other proxy received, if you have already voted using the dissident proxy you are able to change your vote for the current board by using the management WHITE proxy or WHITE voting Instruction form. A later dated proxy will revoke any previous proxy submitted. Shareholders are asked to vote in sufficient time for their proxy or voter information form to be received by Computershare Investor Services Inc. or the Corporate Secretary of the Company not later than October 27, 2020 at 10 a.m. (Toronto time), or in the case of any adjournment of the Meeting, not less than 48 hours, Saturdays, Sundays and holidays excepted, prior to the time of the adjournment.