GCM Global Capital Management initiates shareholder activist action against ‘TSX-V listed’ Cynapsus Therapeutics Inc. to achieve resignation of Director Anthony Giovinazzo
Berlin, May 5/2014
GCM Global Capital Management represents shareholders of Cynapsus Therapeutics and plans to attend the AGM .
A short excerpt:
- Disclosure about the facts behind the Resignation of the Chief Scientific Officer.
Cynapsus Therapeutics Inc. announced on January 22, 2014 that Mr. Bryson, Chief Scientific Officer, would be leaving the Company to pursue other opportunities after he had been in the company for more than 5 years. It is entirely implausible that Mr Bryson after 5 years` working for Cynapsus should leave the company just before a major breakthrough without further arrangements or substantial disagreements with CEO Anthony Giovinazzo.
- The share price traded for several months between 1 to 1.40 dollar. Why was the major financing done at a price of 0.65 dollar?
- Revenue method for management should be changed,so the management of the company is working in the interest of the owners and shareholders of the company.
The CEO of the company, Anthony Giovinazzo, is paid with a fixed compensation ( 300.000 per year) and boni of up to 4 Million dollar for certain milestones, but not linked to the value of the company. Therefore the CEO has almost no particular economic interest in a higher valuation of the company or higher stock prices (he holds only 4% of the shares). There is almost no difference in the value of his compensation if the share price will be 0.20 cent or 2 dollar.
Other than Mr. Giovinazzo, neither the management, nor the board of directors holds significant shares of the company.
- The Board of Directors should be fundamentally changed
Representatives of principal stockholders and representatives of the independent shareholders should replace the board members which has been installed by Mr. Giovinazzo.
- Disclosure as to why Cynapsus Therapeutics Inc. removed a press release from their website on 10/3/12.
- Resignation of Anthony Giovinazzo as Director of the Company
Because he introduced to Cynapsus most of directors and probably controls the majority of the Board, Chairman inclusive, hence there is no control of the CEO ( Anthony Giovinazzo, himself again).
About GCM Global Capital Management:
GCM Global Capital Management has a worldwide network to important market participants of the financial sector. This network of investors, fonds, financial websites and newsletters, newspapers and business magazines has been developed and extended steadily over the past 25 years. There has been excellent long standing business relationships, especially at the financial centers Frankfurt, New York, London, Vancouver and Toronto .
GCM Global Capital Management GmbH has been performing services for far more than 100 listed companies (most of them are listed at the TSX) over the course of the past 10 years. Inclusive coordination of IR-Campaigns, complex analyses, organizing listings for companies, guidance for creation of securities prospectus, introducing of investors, assisting with activistivist shareholder actions.
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