By Lethbridge Herald on May 12, 2015.
The future of the Lethbridge Hurricanes will be decided on June 1, at 7:30 p.m. at the Enmax Centre lounge.
The Hurricanes have announced a special meeting of their shareholders to vote on the possibility of a vote to sell the franchise. The vote is on a special resolution that the board call a meeting to facilitate the sale of the club. In effect, despite the legal wrangling, it is a vote to effectively put the team up for sale to private interests.
Shareholding corporations are reminded they must appoint an individual to proxy for voting purposes. That must be submitted in writing to Davidson and Williams.
The Western Hockey League commissioner made the case for private ownership at a meeting May 4. Ron Robison recommended that shareholders vote to privatize the community-owned Hurricanes. Canes board president Doug Paisley has said he will be happy to have the decision over with. At the May 4 shareholders meeting Paisley said if it’s the will of the shareholders, he’ll “hand over the keys tomorrow.”
The June 1 meeting will also ask shareholders to vote to convert 2,000 of the team’s shares into preferred shares with a par value of $1,000.
Paisley told The Herald the purpose is to raise money for the organization. Common shares cost $100 each and have no guaranteed value while these $1,000 shares would carry a par value of $1,000 which would enable the team to quickly pad the coffers to help out their current situation while also offering a guaranteed return to investors. Should the team sell or get back into good financial shape, the shares could be sold back to the team at the par value ($1,000).
Paisley said there are no buyers lined up for the 2,000 shares. A cap on the number of shares one corporation or individual could own would remain and voting rights would also be the same for the preferred shares. The team has 10,000 shares available and a list of approximately 2,000 active shareholders, so there are common shares ($100) available as well.
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