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Update 2: Fission Uranium fights off dissidents as management’s slate elected

by Greg Klein | December 15, 2015

Fission Uranium TSX:FCU bosses won their latest skirmish with dissatisfied investors as incumbent directors and the management’s one new nominee were elected to the board. Voters representing 51.16% of eligible shares, constituting “record shareholder turnout,” sided with the status quo, Fission announced December 15. The company reported percentages for the seven directors that ranged from a low of 80.37% for chairperson/CEO Dev Randhawa to 89.13% for Ross McElroy, Fission’s president, COO and head geologist.

The company reported a total of 197,855,736 shares voted at the meeting, but the board election drew about 167.7 million votes, media rep David Matthews informed ResourceClips.com.

Fission fights off dissidents as management’s slate elected

Dev Randhawa argues for the Denison merger at an October meeting. The proposal got majority support but fewer than the two-thirds
vote required from Fission shareholders.

“Notwithstanding a withhold campaign launched by a small group of dissident shareholders to withhold votes from the entire board, we have received overwhelming and conclusive support from our shareholders that says we are on the right track and have the plan needed to ensure that PLS and its Triple R deposit reach its full potential,” Randhawa maintained. “We hope that once and for all this puts an end to their costly and distractive campaign against the company.”

Initially triggered by opposition to Fission’s proposed merger with Denison Mines TSX:DML, a group called FCU Oversight presented its own candidates in November. The group withdrew its slate early this month, saying it wasn’t until after leader Jim Gifford submitted his list, “as required by Fission’s last-minute adoption of an advanced notice policy,” that the company revealed change-of-control payouts could put shareholders “on the hook for millions of dollars.” Executive pay was one of the dissidents’ concerns. The group then advised shareholders to vote withhold “to force the current directors to resign.”

Fission’s slate drew support from Rick Rule of Sprott U.S. Holdings, as well as proxy advisory firms Institutional Shareholder Services and Glass, Lewis & Co.

New to the board, which numbered six prior to the election, is Raffi Babikian, whose career “encompasses just about every aspect of the uranium business including M&A activity for AREVA,” according to an earlier statement from Randhawa.

In a brief response to the election, FCU Oversight said Fission “now has the latitude and licence to conduct the business of the company as they [see] fit. We hope that they will act in the long-term interests of all Fission shareholders.”

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