Mayfair Gold Corp. recently disclosed amendments to their employment agreements amid concerns of a potential change in control. The company’s management expressed concerns to the Board about potential changes in the composition of the Board that could impact the current leadership team. In response, the Board decided to update the change of control provisions in the employees’ employment agreements to address scenarios involving shareholder actions to effect control of the Company.
The amendments to the employment agreements were made between February 5, 2024, and February 27, 2024, and included key management personnel and employees, such as the Vice President of Exploration, Chief Financial Officer, and Senior Geologists. The changes aimed to ensure the continuity of the management team and prevent any adverse impacts on the Company’s operations and relationships with stakeholders.
However, on April 19, 2024, the Company received correspondence from Muddy Waters Capital LLC, indicating support from shareholders representing over 50% of the outstanding voting share capital for a Board reconstitution. Subsequently, certain employees, including the CEO and CFO, delivered notices terminating their employment agreements, citing a change of control event based on the actions of Muddy Waters and supporting shareholders.
Following discussions and legal opinions, a settlement agreement was reached on May 6, 2024, whereby the Terminating Employees agreed to hold their notices in abeyance until the upcoming Meeting. The Board determined that maintaining the senior management team until the Meeting was in the best interest of the Company to ensure a smooth transition and allow stakeholders to consider the changes resulting from Muddy Waters’ actions.
Shareholders are advised to vote using the WHITE Proxy or voting instruction form before the deadline on June 3, 2024, to have a say in the upcoming Meeting and Board reconstitution decisions. The Company remains committed to its operations and stakeholder relationships, emphasizing the importance of its management team in driving continued success.
