Broadcast equipment and software maker Miranda Technologies Inc. said Thursday that dissident shareholders are unlikely to have enough support to force a change in its executive team and take control of the company.
U.S.-based JEC Capital Partners and JMB Capital Partners Master Fund, which together hold about 10 per cent of Miranda's outstanding shares, have requested the special meeting to replace four sitting directors and want the company put up for sale.
JEC Capital has said it's looking for increased revenue, increased share value and more contracts for Miranda.
Principals at JEC Capital are agitating for the company to explore all alternatives, including the possibility of liquidation, according to a separate story in Canadian Business.
"Despite our responsiveness, transparency and open dialogue, JEC rejected our proposals and has opted to submit a formal requisition seeking to take control of the company through the appointment of a majority of the board," board chairman Brian Edwards said in a news release.
"This is highly opportunistic and not something that is in the best interest of Miranda and its shareholders," Edwards said.
Edwards said board members of the Montreal-based company are independent and experienced, and the board's composition is routinely reviewed.
"The board and management remain confident that the implementation of the Company's strategic plan and initiatives to enhance value will continue to enhance value for all of its shareholders," he said.
The share price of Miranda (TSX:MT) has increased by more than 80 per cent to $9.38 at the close of trading on Wednesday, up from $5.16 on Dec. 21, 2010. Edwards said.
Miranda said it's continuing to review the request for the meeting.
For the last six years, Miranda's market capitalization has decreased to $188 million from $325 million, or about 42 per cent, Massachusetts-based JEC Capital has said.
Miranda is a leading global provider of hardware infrastructure and software for the television broadcast,cable, satellite and Internet Protocol TV industry.
The company was recently awarded a multi-year, multimillion-dollar contract by NBCUniversal, a global media and entertainment companies, to supply routing infrastructure for its broadcast facilities across the United States.
Despite securing a huge new contract from NBC/Universal and driving a steady increase in share price, some shareholders insist Miranda management has diluted the value of the stock.