Core Viewpoint - Greenfire Resources Ltd. is facing a proxy contest initiated by Waterous Energy Fund (WEF), which has acquired approximately 43.3% of the company's shares and is seeking to replace the current board of directors without offering a premium to shareholders [3][4][7]. Company Actions - Greenfire's Board has adopted a limited-purpose shareholder rights plan to protect minority shareholders and ensure fair treatment in any unsolicited takeover bid [5]. - The company has filed an application with the Court of King's Bench of Alberta regarding the sale of shares to WEF, which has resulted in negative control at a low premium [6]. - Greenfire is currently evaluating the WEF Letter and requisition with its financial and legal advisors, focusing on the qualifications and independence of the proposed nominees [10][11]. Governance Concerns - WEF has proposed six director nominees, four of whom are WEF employees and also directors of Strathcona Resources Ltd., raising concerns about governance practices and potential conflicts of interest [8]. - The Board believes that the proposed nominees do not meet best governance practices for publicly listed companies [8]. Market Position - Greenfire is trading at a discounted valuation compared to its pure play SAGD peers, despite having differentiated Tier-1 SAGD assets and growth plans that position it to benefit from improving Canadian heavy oil market dynamics [9].
Greenfire Acknowledges Receipt of WEF Letter Seeking Control of the Company Without Offering a Premium to Shareholders