|By Marketwired .||
|October 8, 2013 07:42 PM EDT||
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 10/08/13 -- In their latest press release, Anthony Beruschi and Morning Star Resources Ltd. ("Morning Star") confirmed that Mr. Beruschi is finally prepared to deliver his B Claims to the Province so that the $30 million settlement proceeds can be paid into Court removing any risk that the Province may seek to rescind the settlement.
Boss Power Corp. (TSX VENTURE:BPU) ("Boss Power" or the "Company") is pleased to see this development. It has been 13 months since Boss Power, the Province, Sparton Resources Inc., Anthem Resources Incorporated, Adam Travis and Cazador Resources Ltd. attempted to have the B Claims and the settlement proceeds dealt with by the Court by way of a consent order among the parties.
BERUSCHI'S SELF SERVING DELAY TACTICS
Unfortunately for Boss Power and its shareholders, the only party who refused to consent to the order was Mr. Beruschi. Mr. Beruschi's refusal to allow the settlement proceeds to be paid into Court by consent has been followed by 11 months of Mr. Beruschi's high pressure negotiation tactics and personal threats against the board of Boss Power and its advisors. Mr. Beruschi's tactics have been putting the settlement at risk and have held Boss Power's shareholders hostage in an effort to extract an ever increasing payment for his B Claims. What started as a $2 million dollar offer from Mr. Beruschi (paid half in cash and half in Boss Power shares) in December of 2011 is now a number that appears to be in the range of $4 to $5 million. Throughout, he has also been demanding the release of 2,000,000 escrow shares which have not been earned.
BERUSCHI'S COERCIVE ATTEMPT TO TAKE CONTROL OF THE COMPANY WITHOUT PAYING A PREMIUM TO BOSS POWER SHAREHOLDERS
Predictably, Mr. Beruschi's new offer to deliver his B Claims to the Province appears to come with strings attached. He wants his hand-picked board in place before the B Claims are delivered to the Province
If Mr. Beruschi is truly only after fair payment for his B Claims, then he should deliver his B Claims to the Province IMMEDIATELY and let the Court determine the fair value as he has suggested in his latest press release. A new board is not necessary for the Court to determine the value of his B Claims.
If instead, Mr. Beruschi wants his hand-picked board pre-positioned to control the settlement proceeds once they are released to the Company, he still should IMMEDIATELY deliver his B Claims to the Province so that he cannot use the B Claims to coerce shareholders to vote for his proposed board nominees. If he is not prepared to simply propose an alternative slate of directors without the coercion of withholding his B Claims, then Mr. Beruschi should stop his high pressure negotiation tactics and make a take-over bid for the Company so the Boss Power shareholders can receive the control premium they would receive in a legitimate take-over bid for the Company.
Mr. Netolitzky stated: "The Boss Power board remains committed to completing the settlement with the Province and paying Mr. Beruschi fair value for his B Claims in a manner that is in the best interests of all of the Boss Power shareholders. The Province has indicated in its application for the delivery of the settlement proceeds into Court that it may seek to rescind the settlement if the application to pay the proceeds into Court is not successful. Each day that goes by adds to the risk that the Province may rescind the $30 million settlement. We have tried to present simple options to Mr. Beruschi to get this done. If Mr. Beruschi is not prepared to accept the Company's cash offer or opportunity to arbitrate, then he should end his high pressure negotiation tactics and deliver his B Claims to the Province IMMEDIATELY so that the Court can determine the value of his B Claims and the settlement proceeds can be put out of risk. It is time for Mr. Beruschi to do the right thing for all of the Boss shareholders and allow the Company to move forward."
On Behalf of the Board of Directors of BOSS POWER CORP.
Ron Netolitzky, Chairman and acting CEO
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
Boss Power Corp.
Investor Relations, Manager
(604) 669-2543 (FAX)