Coloured Ties Urges Shareholders to Take Back Your Cash and Stop the Treasury Burn
MWN-AI** Summary
Coloured Ties Capital Inc. (TSXV: TIE) has launched a campaign urging shareholders of Labrador Gold Corp. (TSXV: LAB) to reclaim their investments and halt what they describe as a "treasury burn" by the company's current management. The initiative is spearheaded by the Concerned Shareholders, including major investors Kal and Rauni Malhi, who advocate for the removal of the existing management team in favor of leadership that can optimize shareholder value.
The Concerned Shareholders highlight that Labrador Gold’s treasury has plummeted from over $19 million to an estimated $12-14 million without yielding significant returns or developments. They argue that ongoing mismanagement, characterized by poor strategic decisions and a lack of transparency, has led to this decline. To counteract this, they propose a $0.02 per share dividend to provide immediate returns to shareholders and redirect finances from ineffective projects to meaningful investments in the mineral exploration space.
Coloured Ties emphasizes that the company's management is more skilled at creating shareholder value, having successfully developed assets that significantly increased in market value. They draw attention to the contrast between Coloured Ties’ successful operational model and Labrador Gold's current trajectory.
As the upcoming shareholder meeting approaches, Concerned Shareholders are urging others to vote in favor of their proposed changes to ensure a focused leadership that can restore financial health. They assert that continuing the current path risks not only diminishing shareholder investment but could also revert the share price to undesirable levels. The deadline to vote is set for 8 a.m. PST on February 20, 2026, and shareholders are encouraged to take action to secure their financial interests.
MWN-AI** Analysis
Coloured Ties Capital Inc. (TIE) has issued a clarion call to Labrador Gold Corp. (LAB) shareholders to reconsider their investment strategy amidst growing concerns about the company's management and treasury management practices. As a significant shareholder, Coloured Ties is advocating for a $0.02 dividend per share—a strategy that not only aims to return capital to shareholders but also seeks to shift focus towards value-driven governance.
Labrador Gold's treasury has alarmingly decreased from over $19 million to an estimated $12-$14 million without any tangible improvement in shareholder value or project development, raising serious questions about management effectiveness. The current regime appears to lack accountability, exhibiting a tendency towards self-preservation rather than growth.
Shareholders must weigh the implications of continued management as they stand at a pivotal moment. Supporting Coloured Ties could catalyze essential changes that reposition Labrador Gold towards profitable, sustainable project exploration. The dividends proposed offer a significant tax advantage—yielding returns of 25-33%—while allowing shareholders to retain equity stakes in a company focused on mineral exploration.
The minority shareholder rebellion represents a clear demand for accountability—one that resonates deeply, especially given the backdrop of record commodity prices and capital inflow into the exploration sector. Conversely, maintaining the status quo could lead to a significantly diminished treasury, reduced project viability, and a further decrease in share valuation.
In essence, shareholders should consider voting in favor of change to potentially multi-fold their investment returns and secure a robust path forward. With the looming deadline for votes, this is a critical juncture for Labrador Gold. Engaged shareholders must act to ensure a shift towards prudent financial management and oversight.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Canada NewsWire
VANCOUVER, BC, Feb. 19, 2026 /CNW/ - Coloured Ties Capital Inc. (TSXV: TIE) (OTC Pink: APEOF) (FSE: 97A0) ("Coloured Ties"), one of the largest shareholders of Labrador Gold Corp. (TSXV: LAB) (OTCQB: NKOSF) (FSE: 2N6) ("Labrador Gold" or the "Company"), together with Kal Malhi and Rauni Malhi (the "Concerned Shareholders", "us" or "we"), have committed to paying a $0.02 per share dividend and direct Labrador Gold into becoming a respected mineral exploration Company. The Concerned Shareholders urge that voting is critical to ensure Labrador Gold is put on the path to value creation rather than destruction, as current management continues to drain treasury without meaningful developments.
CONCERNED SHAREHOLDERS' "PLAYBOOK" - REMOVE CURRENT MANAGEMENT AND ACHIEVE RESULTS RATHER THAN CONTINUE TREASURY BURN
Labrador Gold recently issued a new release stating that they have concerns regarding our "Playbook" which they frame as action against Labrador Gold as an entity rather than a strategic action to remove the current management team and replace it with consistent value creators and company-builders. The Concerned Shareholders' "Playbook" is simply to maximize shareholder value for the interest of ALL shareholders, while management's current path has been self-entrenching and continues to dwindle the Company's treasure with bad business decisions. The Concerned Shareholders are simply attempting to remove the mismanagement of Labrador Gold, which has been sitting idle during generational commodity price records and capital inflow the mineral exploration sector, and consistently draining the corporate treasury with little to no meaningful value drivers on the horizon.
LABRADOR GOLD TAKES $19M TREASURY TOWARDS $12-13M
Over the last two years, Labrador Gold's treasury dwindled from over $19 million (as of the financial statements dated December 31, 2024) to an expected range of $12-14 million following the upcoming shareholders' meeting, with zero shareholder value delivered by the current Labrador Gold team, further bolstered by lack of accountability and transparency as to the rationale behind the notable 30% of treasury capital drain with no progress on company valuation.
In contrast, Coloured Ties has shown success in creating accretive value for shareholders, having previously acquired the Beacon Gold Mill and Swanson Gold Deposit, two key assets advanced under Lafleur Minerals Inc. from inception to a current market exceeding $60 million, and primed for the restart of gold production in the coming months. Additionally, management criticizes Growmax Resources (since renamed Coloured Ties) for its last dissident action, in which a another poorly managed executive team was removed,by highlighting some "chosen" facts but failing to mention critical points:
Growmax Shareholder Interest Preserved:
- $0.035 per share dividend was paid to Growmax shareholders upon change of the Board of Directors
- Two Normal-Course Issuer Bids (share buy backs) were completed by Coloured Ties to reduce total shares outstanding
- Further highlighting management's lack of business acumen, they note that Coloured Ties only has CAD $658,000 in the bank while failing to recognize that Coloured Ties has over $20,000,000 in net assets and maintains money "invested" beyond bank GIC.
- Kal Malhi and associates have not "sold down" their positions, but are presently the largest shareholders of Coloured Ties
- Coloured Ties is an "investment issuer", a model Labrador Gold wishes to duplicate but fails to recognize that the "investment issuers" model very much trades at a deep discount to NAV, as seen in Coloured Ties' case, which trades at $8 million market capitalization while having over $20 million in NAV. This is one of the reasons for the Concerned Shareholders' opposition to the "investment issuer" change of business, which would be detrimental and unsustainable for a mineral exploration company such as Labrador Gold.
STOP TREASURY BURN ON BAD TRANSACTIONS AND DIVERT THAT TO A DIVIDEND
Coloured Ties will eliminate costs associated with the current path of pursuing remote grassroots projects or "minority investments" that won't deliver value in the current decade, and instead will divert those expenses toward a Shareholder Dividend.
Prior to Coloured Ties' involvement with Labrador Gold and its purchases of Labrador Gold common shares, Labrador Gold's common shares traded in the $0.06- $0.08 range (June to July 2025). A Dividend of $0.02 would provide shareholders an attractive TAX ADVANTAGE DIVIDEND return equal to 25-33% while allow them to maintain their shareholdings intact, in a newly structured mineral exploration-focused company with a true path to development.
In contrast, allowing the current treasury destruction path and voting to continue the current management will likely result in a much-depleted treasury, a poorly chosen grassroots project portfolio, and a return to the pre-Coloured Ties common share valuation, or much less as an "investment issuer" without a meaningful project of its own.
Coloured Ties would like to thank shareholders for the overwhelming support received to date, for acknowledging the gross mismanagement of Labrador Gold and current management's failure to deliver shareholder returns, and urges shareholders who have not yet voted to do so in order to protect and salvage their investment. Only by voting on the GOLD proxy or GOLD VIF can shareholders reverse years of mismanagement, and only by supporting Coloured Ties can shareholders finally get some of their own capital back. We are encouraged that so many fellow shareholders have affirmed the need for change. Their message is clear: shareholders hold the Board and management accountable for years of value destruction and strategic missteps. Equally clear is their unwillingness to compound this record with a risky and unnecessary shift in business--one for which the Board lacks both relevant experience and credible execution capabilities.
DEADLINE TO VOTE OR CHANGE YOUR VOTE IS 8AM PST, FRIDAY, FEBRUARY 20,2026. EVEN IF YOU HAVE VOTED, YOU CAN CHANGE YOUR VOTE BY CALLING YOUR BROKER OR CALLING US AT THE NUMBERS BELOW.
This shareholder meeting will determine whether Labrador continues down a path of value destruction or finally embraces accountability, disciplined capital allocation, and shareholder-focused leadership. It takes minutes to vote. It takes years to undo bad decisions.
If you have any questions or require any assistance with your vote, please contact our strategic advisor, Advisense Partners, at 1.866.207.4819 (toll-free in North America), 1.437.783.3139 (outside North America) or via email at engage@advisensepartners.com.
Disclaimer
The information contained or referenced herein is for information purposes only in order to provide the views of the Concerned Shareholders and the matters which the Concerned Shareholders believe to be of concern to shareholders described herein. The information is not tailored to specific investment objections, the financial situations, suitability, or particular need of any specific person(s) who may receive the information, and should not be taken as advice in considering the merits of any investment decision. The views expressed herein represent the views and opinions of the Concerned Shareholders, whose opinions may change at any time and which are based on analyses of the Concerned Shareholders.
About Coloured Ties Capital Inc.
Coloured Ties is a publicly traded Canadian-based venture capital firm focused on early-stage investments in companies in the junior resources and breakthrough and disruptive technologies. Coloured Ties' investment strategy is to invest early in multiple private and public companies across a variety of sectors that merit investment to advance promising ventures globally. Coloured Ties invests early-stage in promising projects, serving as the Founding or Early-Stage investor and providing investees with advisory services and access to the Company's ecosystem.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements: Certain information in this news release may constitute "forward- looking information" within the meaning of applicable securities legislation. Forward-looking statements and information generally can be identified by the use of forward-looking terminology such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe," "should," "plans," "continue," or similar expressions suggesting future outcomes or events. Forward-looking information in this news release may include, but is not limited to, statements of the Concerned Shareholders regarding the proposed payment of a dividend should the Concerned Shareholders be successful in reconstituting the Board, the outcome of the shareholder meeting, the Concerned Shareholders' ability to remove mismanagement of Labrador Gold and maximize shareholder value, the value of Labrador Gold shares and other matters pertaining to Labrador and its business and its treasury. There can be no assurance that the plans, intentions or expectations upon which these forward-looking statements and information are based will occur or, even if they do occur, will result in the plans, results or performance expected. We caution readers not to place undue reliance on forward-looking statements and information contained in this news release, which are not a guarantee of performance, events or results and are subject to a number of risks, uncertainties and other factors that could cause actual results, performance or events to differ materially from those expressed or implied by such forward- looking statements or information. These factors include regulatory approvals, general economic and market conditions, changes in law, changes in management, changes in the composition of the Board, actions of Labrador and its subsidiaries or competitors, the ability to implement business strategies and plans and pursue business opportunities and conditions in the mineral exploration industry. Shareholders are cautioned that all forward-looking statements and information involve risks and uncertainties, including those risks and uncertainties detailed in the continuous disclosure and other filings of Labrador with applicable Canadian securities regulators. We urge you to carefully consider those factors.
The forward-looking statements and information contained in this news release are expressly qualified in their entirety by this cautionary statement. The forward-looking statements and information included in this news release are made as of the date hereof and the Concerned Shareholders undertake no obligation to publicly update such forward-looking statements or information to reflect new information, subsequent events or otherwise, except as required by applicable laws.
SOURCE Coloured Ties Capital Inc.
View original content: http://www.newswire.ca/en/releases/archive/February2026/19/c8225.html
FAQ**
How do the Concerned Shareholders of Coloured Ties Capital Inc. believe that the removal of current management at Labrador Gold Corp NKOSF will impact the company's future value creation and recovery of shareholder investments?
What specific strategies does Coloured Ties propose to implement post-management change at Labrador Gold Corp NKOSF to prevent further treasury burn and ensure efficient capital allocation?
Given the concern around Labrador Gold's decreasing treasury, how do the Concerned Shareholders plan to restore shareholder confidence and maximize value post-dividend implementation at Labrador Gold Corp NKOSF?
What accountability measures does Coloured Ties Capital Inc. suggest to ensure transparent management practices at Labrador Gold Corp NKOSF following the proposed changes in leadership?
**MWN-AI FAQ is based on asking OpenAI questions about Labrador Gold Corp (OTC: NKOSF).
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