Anson Funds urges Gildan Activewear board to reinstate Glenn Chamandy as CEO

Anson Funds Management LP and Anson Advisors Inc., the co-investment advisers of certain investment funds, and significant shareholders of Gildan Activewear, issued the following statement regarding its views on the company’s Board of Directors’ poor handling of succession planning and calling for the Board to immediately reinstate Glenn Chamandy as CEO. “Anson Funds has become increasingly concerned by the Board’s handling of succession planning and disregard for shareholder feedback. We disagree with the Board’s decision to remove Mr. Chamandy as CEO given his strong track record of value creation, and are calling for his immediate reinstatement and the implementation of a formal succession planning process including the engagement of company shareholders. The Board’s mishandling of the succession planning process to date and its actions thereafter have resulted in an incredibly value-destructive distraction that must be immediately addressed. We are further troubled by the Board’s decision to strike a backroom deal granting an individual shareholder a board seat in exchange for their support before engaging with other investors to discuss the company’s approach to succession planning. Instead, company shareholders had to read about the Board’s views on Mr. Chamandy in press reports, which we have since learned are false accusations. Specifically, the Board’s commentary regarding M&A appears designed to perpetuate this distraction at the cost of what should be its key focus: succession planning. We believe the best course of action is to immediately reinstate Mr. Chamandy, especially considering Vince Tyra seemingly lacks the skills required to lead Gildan into its next stage of growth.”