Concerned shareholders challenge Blacksteel Energy asset sale plans

In Canada, a faction of Blacksteel Energy Inc.'s shareholders, known as the Concerned Shareholders, has initiated efforts to call a meeting to reconstitute the company's Board of Directors. This action comes in response to the firm's announcement regarding the proposed sale of its Girouxville oil and gas assets, which the Concerned Shareholders argue will diminish the value of Blacksteel's shares significantly. They contend that the sale will only benefit creditors by repaying debts, leaving shareholders with illiquid shares in a company lacking a clear strategic direction or viable assets. The Concerned Shareholders have expressed their readiness to inform fellow shareholders of their requisitioned meeting. They are particularly alarmed by the fact that Blacksteel’s shares have been under a cease trade order since November 2023, hindering its ability to raise capital effectively. This climate of uncertainty and financial restriction has prompted shareholders to question the leadership and strategic decisions of the current board. Notably, Jeff Callaway, who previously served as Blacksteel's CEO, raised over $2 million for the corporation during his tenure and believes that appropriate investments could enhance the value of the Girouxville assets rather than selling them apace. The Concerned Shareholders suggest that maintaining ownership of these assets is strategically wiser than the proposed sale, which would ultimately pay off debts and leave shareholders with minimal value in their holdings. As of now, no official date has been set for the meeting, and the Concerned Shareholders have not yet begun soliciting proxies in advance of their gatherings. Their approach is expected to include various methods to inform and gather support from fellow shareholders in order to instigate the changes they deem essential for the corporation's future.