VANCOUVER, June 6 LawFuel.com – Legal Announcements – The Executive Directors of Rockwell Diamonds Inc. (TSX: RDI; JSE: RDI; OTCBB: RDIAF) today announced that in a June 5, 2009 decision the Supreme Court of British Columbia has denied the Petition of Pala Investments Holdings Limited to strike down the Executive Directors’ proxy for the June 17, 2009 shareholders meeting. David Copeland, Chairman of Rockwell, speaking on behalf of the Executive Directors, said “In making its ultimate ruling, the Court agreed that shareholder democracy should prevail.”
“We are pleased with the court’s ruling as it is clearly an affirmation of shareholder rights. Pala’s attempt to have our Green Proxy withdrawn was an underhanded way of stifling the dissenting voices against Pala’s brazen attempt to indirectly take control of Rockwell. This has been yet another Pala roadblock intended to distract us from running our business and further depletes the Company’s treasury.”
“The Executive Directors strongly objected to Pala’s position that on the critical issues of board composition and the continuation of Rockwell’s Shareholder Rights Plan that Rockwell shareholders might find reading and understanding the voting instructions on the Green Proxy a challenge. The court concluded that the Green Proxy could be used for voting on these two resolutions and confirmed the mechanics of how the votes are to be counted on the issue of board composition and the continuation of the rights plan.”
On the matters of the Fair Rights Offering and the denial of Pala’s costs in connection with convening the meeting, Mr. Copeland said “The Court did rule that there was an issue as to the manner in which the purely advisory vote on the Fair Rights Offering and the vote on denying Pala’s costs could be brought before shareholders at the meeting. The Court left it for the chairman of the June 17 meeting to determine whether these matters should be considered at the meeting, if raised. If the chairman entertains motions to consider the Fair Rights Offering or the denial of Pala’s costs we will be guided by the directions shareholders give in their Green Proxies on these issues in determining how to vote those proxies.”
A copy of the Court’s order is available on www.sedar.com and on the website of the Executive Directors www.executivedirectorsrockwell.com.
THE FUTURE OF ROCKWELL DIAMONDS INC. WILL BE DETERMINED BY THE OUTCOME OF
THIS VOTE. DO NOT ALLOW A DISSIDENT MINORITY SHAREHOLDER TO TAKE CONTROL
OF ROCKWELL AND YOUR INVESTMENT.
THE EXECUTIVE DIRECTORS URGE YOU TO VOTE ONLY THE GREEN PROXY AS
RECOMMENDED ON THE GREEN PROXY
For further information, contact:
The Laurel Hill Advisory Group by email at [email protected]
laurelhillag.com or by phone at:
Toll free Or Collect
North America 1-888-882-6737
Europe 00-800-8655-1111 1-416-637-4661
South Africa 0-800-982-179
The comments of the Executive Directors in this news release and on the website are solely their own and not of any other director. For general information about Rockwell please visit its own website at www.rockwelldiamonds.com or contact Investor Services at (604) 684-6365 or within North America at 1-800-667-2114. Investor Services deals with Company information and is not authorized to discuss matters or answer questions relating to the contested special shareholders meeting. Questions relating to the Executive’s Director’s positions in respect of the Meeting should be directed to Laurel Hill Advisory Group as per above.
No regulatory authority has approved or disapproved the information
contained in this news release.