Lone Star Value Proposes New Direction for Antares Serves Notice to Requisition Shareholder Meeting to Elect Five Highly-Qualified Independent Directors to Antares Board PR Newswire NEW YORK, May 22 2014 NEW YORK, May 22 2014 /PRNewswire/ --Lone Star Value Investors, LP (together with its affiliates, "Lone Star Value" or "we"), a significant shareholder of Antares Energy Limited (ASX: AZZ) (OTC: AZZEF) ("Antares" or the "Company"), today unveiled a plan to improve the Board of Directors of Antares by adding five independent directors with extensive and deep experience relevant to Antares' business. Lone Star Value, which owns 6.0% of the outstanding shares in Antares, today served the Company with a Notice requisitioning an Extraordinary General Meeting ("EGM") of Antares' shareholders to vote on the election of its five highly-qualified independent director candidates. Lone Star Value believes that a reconstituted Board is a critical first step to properly executing on a long term growth strategy based on improved corporate governance and a more rigorous approach to capital management and asset development. Lone Star Value is also seeking to remove two current directors who have not enjoyed the full support of shareholders or proxy advisers - Vicky McAppion and Greg Shoemaker - and we note that at the last two annual meetings it had been recommended that shareholders vote against their reappointments. In his capacity as an employee Mr. Shoemaker is Antares' Scientific Officer, therefore we believe there is a conflict of interest between his role as an executive employee and as a director. The appointment of five nominated truly independent directors, whose roles would not be conflicted by employment duties, will provide Antares with the board expertise it requires going forward. The Notice requisitioning the EGM was lodged today with the company under section 249D of the Corporations Act. Lone Star Value has developed a Five Point Plan which in its estimate can double Antares' stock price if successfully executed. The implementation and oversight of Lone Star Value's Five Point Plan to maximize shareholder value require fresh perspective, independence and the broad range of skill sets on the Board that Lone Star Value's nominees possess. Lone Star Value's Five Point Plan to maximize shareholder value includes: 1.Appointing new Directors with the appropriate financial, operating and technical expertise 2.Reviewing Antares' current strategy and exploring all strategic alternatives 3.Considering a potential share market listing in the US 4.Lowering Antares' cost of capital 5.Steadily increasing production through increased drilling activity Jeff Eberwein, founder of Lone Star Value and a nominee stated: "We see tremendous intrinsic value in Antares' shares that we believe the market continues to discount. Clearly Antares' performance to date has been very disappointing. We believe that we can bring about real change and unlock value from the company's portfolio of oil and gas assets. There has been a lack of transparency, poor communication surrounding the failed sale of assets last year, a lack of board independence and executive remuneration has been out of synch with pay-for-performance. We are confident that significant value can be unlocked under the stewardship of an enhanced Board overseeing a strategically coherent plan. Our objective is to maximize value for all shareholders." Mr Eberwein reiterated a call for the incumbent Board not to take actions adverse to the best interests of the Antares shareholders prior to the EGM, such as: issuing equity or equity-linked securities (specifically further convertible debt offerings); being uncooperative or hindering Lone Star Value in calling this EGM; agreeing to sell material assets of the Company (including any of its projects); making material acquisitions, forming joint ventures, or adding any further members to the Board prior to the EGM. Shareholders will be advised in coming days about the date for the EGM and Lone Star Value will continue to provide shareholders with updated information about its proposed turnaround strategy. Shareholders can also seek additional information via the shareholder helpline on 1300 889 468 or if calling from outside Australia +61 2 8022 7902. Or by visiting www.antaresvalue.com.au. For media enquiries please contact: John Hurst Cannings Corporate Communications +61 418 708 663 SOURCE Lone Star Value Management, LLC
Lone Star Value Proposes New Direction for Antares
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