Vancouver-based WebTech Wireless Inc. (TSX:WEW) has asked its shareholders to take no action after minority shareholder Goodwood Inc. requisitioned WebTech to hold a general shareholder meeting and vote on a new board.
WebTech provides services such as automatic vehicle location, mapping, vehicle diagnostics, CO2 reporting, navigation, messaging and mobile resource management.
Goodwood Inc., which owns 13.7% of WebTech’s shares, made the requisition yesterday, asking that the meeting be held by May 18.
In a press release, Goodwood stated that its goal is to maximize shareholder value, and voiced concern that the current board owns “just 0.76%” of WebTech’s stock.
WebTech countered with its own news release, asking shareholders to take no action before WebTech’s just-formed special committee could “review and consider the matters set forth in the requisition and all other strategic alternatives available to the company.”
WebTech also commented that Goodwood bought 70% of the shares it owns March 1.
Glen Brownless, Webtech’s board chairman and chairman of the new committee, said, “It is unclear how it could be in the best interest of [WebTech] to give control to a minority shareholder who has only recently acquired an interest in the company and has no discernible experience in the telematics business; however, we will give due consideration to all options available to the company.”
The WebTech release also stated, “The slate of directors Goodwood has proposed has a majority of Goodwood insiders or advisers, as opposed to the current board, which has a majority of independent members.”
Goodwood is contesting that statement, company chief investment officer Peter Puccetti said in an email.