Melrose Group Seeks OSC Intervention Amid Hank Payments Takeover Bid

The Melrose Group has filed a complaint with the Ontario Securities Commission (OSC), seeking exemptive relief for its takeover bid on Hank Payments. The group requests a halt on Hank Payments share trading to establish share provenance, crucial for an accurate bid. Melrose claims that the management of UpTempo Inc., the largest Hank Payments shareholder, withholds vital ownership data.

Melrose argues that share conversions under management could dilute existing shareholders by 80%, urging the OSC to revert such conversions. The Melrose Group has requisitioned shareholder meetings to address these issues, asserting a violation of the Canada Business Corporations Act (CBCA) by not conducting valid meetings.

A resolution is sought urgently, as Melrose's control and bid are contingent on OSC's determination. Melrose highlights potential inconsistencies in share issuance without proper consideration, which needs regulatory clarification. The group's current ownership reportedly surpasses 10%, likely exceeding the statutory 20% takeover threshold, mandating OSC's immediate assessment.