Before the company’s annual meeting in Toronto could be properly constituted, Smith announced to the gathering that the board of directors had decided to postpone the meeting until Dec 5.
He gave no reason for the decision to shareholders, but The Northern Miner has learned that the Ontario Securities Commission is examining the legality of proposed changes to the company. Not all of them may have been properly approved by the board of directors as set out in the company’s by-laws.
The problems stem from Acadia’s apparent sudden departure from stated company objectives. The company recently dealt many of its prime exploration properties to Guinness Gold Resources (ASE), then subsequently sold its 60% interest in Guinness at prices substantially below market value.
In the management proxy circular mailed to shareholders prior to the Oct 30 meeting, long-time Acadia geologist Avard Hudgins was excluded from Acadia’s proposed slate of directors and William Baird of Toronto was added.
A 1-for-3 share consolidation is also proposed. All these changes clearly indicate the company is moving away from mineral exploration. But in what direction is the company headed? The leasing business is one suggestion.
Smith’s son, David Smith, has acted as an intermediary in the leasing of office equipment to a law firm in Toronto on Acadia’s behalf. That deal will give Acadia an 18% return on about $34,000.
No mention is made in the company’s 1989 annual report of any intention to move into the leasing business. The company’s fiscal year ended June 30, 1989. Acadia has about 10.7 million shares outstanding.
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