Caravan Announces Special Meeting and Conversion of Derivative Action to Direct

CALGARY, AB / ACCESSWIRE / August 26, 2024 / Caravan Trailer Lodges of Alberta Ltd. (the "Company" or "Caravan") is pleased to announce that: (i) a special meeting of its shareholders will be held on September 16, 2024 at 10:30 a.m. (Calgary time) at 639 - 5^th Avenue S.W. (Main Floor Boardroom), Calgary, Alberta T2P 0M9; and (ii) the derivative action that was initially commenced by Mr. Herbert Styles has been converted to a direct action pursuant to a Consent Order dated August 16, 2024.

Special Shareholder Meeting

The purpose of the special shareholder meeting is for the shareholders to consider and, if thought advisable, approve a special resolution authorizing the sale of the Company's 10.25 acre parcel of land located at 2787 - 86^th Avenue S.E., Calgary, Alberta pursuant to a binding purchase and sale agreement that it has entered into (for details, see the Company's press release dated July 26, 2024). The record date for determination of Shareholders entitled to receive notice of and to vote at the special shareholder meeting is August 16, 2024. Meeting materials have been filed under the Company's profile at www.sedar.com today and have been sent to registered shareholders. It should be noted that only registered shareholders as of the record date (or their duly appointed proxyholders) will be entitled to attend the meeting in person. Any shareholders that are unable to attend the meeting are encouraged to cast their votes via the proxy materials that are being sent to them today.

Conversion of Derivative Action to Direct Action

In 2019, Mr. Herbert Styles was granted permission by the Court of King's Bench (formerly Court of Queen's Bench) to conduct a derivative action on behalf of the Company against the former directors and officers of Caravan. That action commenced on March 5, 2021. Recently, the parties to that litigation, and the Company, agreed to convert the action from a derivative claim to a direct one, so that the Company could conduct and manage its own litigation against the Defendants. By consent, that conversion has occurred pursuant to a Consent Order dated August 16, 2024. The Board has established a Special Committee (comprised of Calum Stewart and Bev McKenzie) to conduct the litigation, to negotiate a reasonable settlement in the best interests of the Company, or to litigate if necessary.

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, President 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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