Caravan Announces Receivership Application Defeat, Update Re Corporate Milestones
CALGARY, AB / ACCESSWIRE / February 23, 2024 / Caravan Trailer Lodges of Alberta Ltd. (the "Company" or "Caravan") is pleased to announce that the previously announced application to appoint a receiver has been dismissed. That application was brought by Herb Styles, on his own and without the support of the Board of Caravan. Among other things, it sought to have the Board replaced and to remove the rights of shareholders to vote upon any sale of the Company's Trailer Park lands, should one be agreed upon with a buyer. The application was heard on February 15, and the Judge ruled on February 16: the application was dismissed. There is no receivership. The Board's work has been acknowledged by the Court, and the Board will continue to ensure that Caravan's best interests are looked to carefully.
Despite the distraction and expense that the Board had to undertake on the Company's behalf in defeating Mr. Styles' unilateral receivership application, the Board has also been able to continue its work and continues to make progress towards the Company's objectives. The following are some recent corporate milestones that have been or are being dealt with by the Board:
- The Board was able to finalize and deliver the audited financial statements for each of the 2019, 2020, and 2021 financial years to all registered shareholders of record.
- The audited financial statements for 2022 and 2023 have been delayed as a result of delay by Mr. Styles and his legal counsel in responding to repeated requests for invoices for the amounts being claimed by them from Caravan for services rendered to Mr. Styles in his role as a Director. The Board understands that the final information is now in hand, and the Board expects to be delivering the final audited financial statements for those years very soon.
- The Board interviewed several experienced real estate agents to be Caravan's listing agent for the sale of the Trailer Park lands, which constitute Caravan's major real property asset. In mid-January, the Board chose a listing agent, and that listing agent has taken the Trailer Park lands to market. For the first part of their process, the threat of lower prices due to the judicial sale being sought by Mr. Styles likely kept a damper on the process, but now that the receivership application has been dismissed, the Board is looking to sell the lands in a free market and will seek to maximize shareholder value through the sale.
- The Board has successfully approved a list of registered shareholders, and the Company will now be in a position to issue a Notice of Meeting when the time comes to seek shareholder approval for the sale of the Trailer Park lands. The Board (though the Company's legal counsel) continues to work with registered shareholders and potential beneficiaries to give effect to all valid shareholding bequests.
Forward Looking Statements
Except for statements of historical fact relating to the Company, certain information contained herein constitutes forward-looking statements. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Calum Stewart
Chairman and Director
ac.stewart@hotmail.com
Legal Inquiries can also be directed to Caravan's independent counsel, Tingle Merrett LLP, attention: Brett Code K.C. (ph: (403)571-8014) (re litigation matters); or Paul Bolger (ph: (403)571-8006) (re corporate matters).
SOURCE: Caravan Trailer Lodges of Alberta Ltd.
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