Top Strike Resources Corp, dba Vencanna Ventures, Shareholder Proposes Special Committee to study Pivot into Plant-Based Protein Foods Segment

Top Strike Resources Corp, dba Vencanna Ventures, Shareholder Proposes Special Committee to study Pivot into Plant-Based Protein Foods Segment

Canada NewsWire

TORONTO, Feb. 5, 2020 /CNW/ - ExpoWorld Ltd. ("we" or "our"), a current 8% shareholder of Top Strike Resources Corp. (d.b.a. Vencanna Ventures) (CSE: VENI; OTCQB: TPPRF) (the "Corporation"), today sent an open letter to the board of directors (the "Board") of the Corporation expressing a desire for the Board to create a Special Committee to launch a systematic review of its options and to pivot the Corporation's investment activities into the high growth Plant-Based Protein Foods segment in order to enhance shareholder value.

Dear Board members,

We propose that the Board create a Special Committee to evaluate opportunities in the emerging high-growth area of Plant-Based Protein Foods where the Corporation's capital investment can be expected to result in strong exits during the next two years.  With the right due diligence and selection process, the Corporation's strong capital base, exchange listing and management expertise will provide an early mover advantage as compared to many other financiers that are now turning their attention to the Plant-Based Protein Foods sector. The opportunities are currently plentiful and exceptional returns and enhanced shareholder value stands to be created by entering this emerging space expeditiously.

While deciding whether to stay true to the Corporation's mandate of being a merchant capital firm that invests in early-stage global businesses, the Special Committee should take a structured and systemic approach to consider:

  1. not further extending the Corporation's $4 million revolving loan to Medical Investor Holdings, LLC (d.b.a Vertical Companies) ("Vertical"), such that this cash is returned immediately to the Corporation;

  2. reviewing any near-term opportunities to divest of the Corporation's current minor equity investment concentrated in the cannabis sector;

  3. utilizing the Corporation's potentially up to $8.5 million in cash (almost $0.05 per share) and its position as a CSE-listed issuer to seek out opportunities in the high-growth sector of Plant-Based Protein Foods, which is reasonably expected to strongly outperform the cannabis sector during the next couple of years; and

  4. whether the Corporation should undergo a full "fundamental change" or "change of business" (as per CSE Policy 8) and consider a completely transformative event such as an M&A transaction involving an already well-established pure-play business entity operating in the Plant-Based Protein Foods sector.

The Special Committee is encouraged to review all recent financings in the emerging Plant-Based Protein Foods sector, especially those recently completed by Burcon Nutrascience Corporation and the recent IPO of Beyond Meat, Inc. The Special Committee should devise a plan regarding how Vencanna can adequately begin a process to identify, finance and incubate a strong early-stage investment in the Plant-Based Protein Foods sector by investing, or merging with, a businesses that will benefit from access to Vencanna's capital, its management expertise and its profile as a CSE-listed issuer.

A recent report by RethinkX, a technology-disruption think tank, titled "Rethinking Food and Agriculture from 2020 to 2030" cites three strong circumstances supporting growth in the Plant-Based Protein sector: (i) concerns about animal-protein production's impact on the environment; (ii) human health; and (iii) animal welfare.  The report predicts that the Plant-Based Protein Foods industry will not just grow rapidly, but it will rival and may surpass the USD$1-trillion animal-protein industry within in the next 15 years. The report predicts that the world is on the cusp of the fastest, deepest, most consequential disruption of agriculture in history. A similar report by Allied Market Research recently forecast that the global meat-substitutes market will be worth USD$8.1 billion by 2026 – a compounded annual growth rate of 7.8%.

We have prepared and disseminated this letter as a supportive shareholder and in order to publicly announce certain encouragements for the Corporation.  The principal purpose of this communication is to express the supportive shareholder's present concerns with the cannabis sector and to provide an explanation regarding the recommendation to consider pivoting into the high-growth Plant-Based Protein Food sector.  The principal purpose is not to oppose the Board or to solicit proxies.  We are seeking to be supportive to the Board and are not seeking anyone's proxies and are not encouraging the granting of any proxies to anyone nor any withholdings or revocations thereof.  We are not currently acting jointly and in concert with anyone soliciting proxies and are not currently proposing any new transaction between or involving us and the Corporation.  All of our costs associated with this communication are expected to be borne by us.

This press release contains our current views regarding the Corporation and the topics discussed above. Our views are based on our own analysis of publicly available information and assumptions we believe to be reasonable. The information contained above is not and should not be construed as investment advice regarding the Corporation's securities or any voting recommendations.

Cision View original content:

SOURCE ExpoWorld Inc.

View original content:

Copyright CNW Group 2020