{"id":1091,"date":"2015-01-26T12:48:03","date_gmt":"2015-01-26T12:48:03","guid":{"rendered":"https:\/\/crownpointenergy.com\/?p=1091"},"modified":"2015-01-26T17:08:59","modified_gmt":"2015-01-26T17:08:59","slug":"jan-26-2015","status":"publish","type":"post","link":"https:\/\/crownpointenergy.com\/?p=1091","title":{"rendered":"Jan-26-2015"},"content":{"rendered":"

Crown Point Cautions Shareholders to be Wary of Dissident LAIG and to Review Court Filings<\/a>
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Shareholders Urged to Vote White Proxy in Support of Second Tranche Financing and Against Dissident Attempt to Take Control of Company<\/strong><\/p>\n

TSX-V: \u00a0CWV: Crown Point Energy Inc. <\/strong>(\u201cCrown<\/strong> Point<\/strong>\u201d or the \u201cCompany<\/strong>\u201d) today advised shareholders to be wary of dissident shareholder LAIG Oil Investments (\u201cLAIG<\/strong>\u201d) and its unverified financial capabilities.<\/p>\n

In light of LAIG\u2019s apparent new last-minute financing proposal (the \u201cApparent Last-Minute Proposal\u201d) Crown Point urges shareholders to review court filings regarding a different agreement in which LAIG was involved. The filings appear to call into question LAIG\u2019s financial capabilities and appear to contradict LAIG\u2019s disclosure to Crown Point\u2019s shareholders. The filings have been posted to Crown Point\u2019s website at www.crownpointenergy.com\/proxycontest<\/a>.<\/p>\n

\u201cShareholders should be wary of LAIG\u2019s claims, its Apparent Last-Minute Proposal and its mystery CEO candidate,\u201d said Gordon Kettleson, Chairman of Crown Point. \u201cFor months we have been asking LAIG to verify its claimed capabilities, but we have received nothing back except the threat of a lawsuit. Shareholders should be asking the same questions, and should demand to know the name of the CEO candidate and the extent of that candidate\u2019s experience as a CEO and running a Canadian publicly traded company.<\/p>\n

Crown Point questions the timing of LAIG\u2019s Apparent Last-Minute Proposal<\/strong><\/p>\n

Crown Point\u2019s Board is concerned about the timing of LAIG\u2019s Apparent Last-Minute Proposal and LAIG\u2019s tactic of announcing it publicly when no such financing proposal has ever been made to Crown Point. The self-serving timing and tactics suggest that LAIG is just trying to disrupt Crown Point\u2019s fully documented Second Tranche financing, which Crown Point first disclosed publicly more than two months ago.<\/p>\n

Crown Point reminds shareholders that it has a binding agreement for the Second Tranche financing with two substantial strategic investors in Argentina. These investors, on completion of the first tranche of that financing, became members of Crown Point\u2019s Board of Directors. These investors have a verified capability to meet the terms of the investment agreement for the Second Tranche.<\/p>\n

Crown Point believes that shareholders should vote the WHITE<\/strong> proxy at the forthcoming Shareholder Meeting FOR<\/strong> the Second Tranche rather than trust the Company\u2019s future to LAIG\u2019s unverified financial capabilities.<\/p>\n

Crown Point assures shareholders that if LAIG were to ever actually present the Company with a binding offer of any kind, it would be considered carefully. Crown Point\u2019s Board will act in the best interests of the Company and all shareholders after considering, among other things, the terms of any such offer, were it to be made, and whether LAIG had provided concrete evidence of its financial capabilities and ability to complete the financing on a timely basis.<\/p>\n

Court filings raise questions about LAIG and contradict LAIG\u2019s disclosure<\/strong><\/p>\n

The court filings posted to Crown Point\u2019s website were filed in a New York Court last year in a civil proceeding between LAIG and the Argentine oil and gas producer Medanito S.A. In these court documents you will read that LAIG sued Medanito after the two parties signed a binding agreement to act as partners on an Argentine oil and gas acquisition.<\/p>\n

Medanito, in its defense, said in the court filings that the transaction was “threatened by LAIG’s inability to finance its obligations” after LAIG lost the support of two other investors. Medanito added that it proceeded to close the transaction without LAIG because Medanito believed LAIG “had no assets in Argentina” with which to cover damages if the deal did not close in a timely fashion as called for under the binding agreement.<\/p>\n

LAIG disputes Medanito\u2019s defense and the case remains before the court. But given the matters being aired in these court documents, we believe shareholders should be mindful of LAIG\u2019s unverified financial capability even if LAIG publicly describes its Apparent Last-Minute Proposal as \u201cbinding.\u201d<\/p>\n

In these court documents you will also read the following admissions by LAIG\u2019s President and dissident nominee Jorge de Pablo:<\/p>\n