Barnwell Industries, Inc. Disqualifies Ned Sherwood’s Board Nominees Included in Defective and Insufficient Nomination Notice for 2025 Annual Meeting
Barnwell Industries (NYSE: BRN) has announced that its Executive Committee has disqualified Ned Sherwood's board nominees for the 2025 Annual Meeting due to defective and insufficient nomination notices. The company has set March 14, 2025, as the record date for shareholders to act by written consent regarding Sherwood's attempt to replace the entire Board of Directors.
The Executive Committee claims Sherwood is attempting to gain control without offering any premium or presenting an alternative strategy. The company recently offered a settlement where five of seven directors would be Sherwood-approved individuals, with Sherwood becoming Chairman, but this was rejected. Notably, Sherwood is now attempting to remove his own previous nominee, Doug Woodrum.
In a separate development, Barnwell has entered into a non-binding letter of intent to sell its water well subsidiary, as part of its strategy to focus on core oil and gas exploration business and reduce administrative expenses. The company expects to hold its 2025 Annual Meeting in the fiscal third quarter of 2025.
Barnwell Industries (NYSE: BRN) ha annunciato che il suo Comitato Esecutivo ha disqualificato i candidati al consiglio di Ned Sherwood per l'Assemblea Annuale del 2025 a causa di avvisi di nomina difettosi e insufficienti. L'azienda ha fissato il 14 marzo 2025 come data di registrazione per gli azionisti per agire mediante consenso scritto riguardo al tentativo di Sherwood di sostituire l'intero Consiglio di Amministrazione.
Il Comitato Esecutivo sostiene che Sherwood sta cercando di ottenere il controllo senza offrire alcun premio o presentare una strategia alternativa. Recentemente, l'azienda ha proposto un accordo in cui cinque dei sette direttori sarebbero stati persone approvate da Sherwood, con Sherwood che sarebbe diventato Presidente, ma questa proposta è stata rifiutata. È importante notare che Sherwood sta ora cercando di rimuovere il suo precedente candidato, Doug Woodrum.
In uno sviluppo separato, Barnwell ha firmato una lettera di intenti non vincolante per vendere la sua controllata di pozzi d'acqua, come parte della sua strategia per concentrarsi sul business principale di esplorazione di petrolio e gas e ridurre le spese amministrative. L'azienda prevede di tenere la sua Assemblea Annuale del 2025 nel terzo trimestre fiscale del 2025.
Barnwell Industries (NYSE: BRN) ha anunciado que su Comité Ejecutivo ha descalificado a los candidatos al consejo de Ned Sherwood para la Junta Anual de 2025 debido a avisos de nominación defectuosos e insuficientes. La compañía ha fijado el 14 de marzo de 2025 como la fecha de registro para que los accionistas actúen por consentimiento escrito en relación con el intento de Sherwood de reemplazar a toda la Junta Directiva.
El Comité Ejecutivo afirma que Sherwood está intentando obtener el control sin ofrecer ninguna prima ni presentar una estrategia alternativa. Recientemente, la compañía ofreció un acuerdo en el que cinco de los siete directores serían personas aprobadas por Sherwood, con Sherwood convirtiéndose en Presidente, pero esta propuesta fue rechazada. Notablemente, Sherwood ahora está intentando remover a su propio candidato anterior, Doug Woodrum.
En un desarrollo separado, Barnwell ha firmado una carta de intención no vinculante para vender su subsidiaria de pozos de agua, como parte de su estrategia para centrarse en el negocio principal de exploración de petróleo y gas y reducir los gastos administrativos. La compañía espera llevar a cabo su Junta Anual de 2025 en el tercer trimestre fiscal de 2025.
바른웰 인더스트리 (NYSE: BRN)는 그 임원위원회가 네드 셔우드의 2025년 연례 회의 이사 후보를 결격 처리했다고 발표했습니다. 이는 결함이 있는 불충분한 후보자 공고 때문입니다. 회사는 셔우드가 이사회 전체를 교체하려는 시도와 관련하여 주주들이 서면 동의로 행동할 수 있도록 2025년 3월 14일을 기록일로 설정했습니다.
임원위원회는 셔우드가 프리미엄을 제안하거나 대안 전략을 제시하지 않고 통제권을 얻으려 하고 있다고 주장합니다. 최근 회사는 7명의 이사 중 5명이 셔우드가 승인한 인물로 구성되고, 셔우드가 의장이 되는 합의안을 제시했으나 이는 거부되었습니다. 특히, 셔우드는 이제 자신의 이전 후보인 더그 우드럼을 제거하려 하고 있습니다.
별도의 개발로, 바른웰은 수자원 자회사를 판매하기 위한 비구속적 의향서를 체결했습니다. 이는 핵심 석유 및 가스 탐사 사업에 집중하고 관리 비용을 줄이기 위한 전략의 일환입니다. 회사는 2025년 회계 3분기에 2025년 연례 회의를 개최할 것으로 예상하고 있습니다.
Barnwell Industries (NYSE: BRN) a annoncé que son Comité Exécutif a disqualifié les candidats au conseil de Ned Sherwood pour l'Assemblée Générale de 2025 en raison d'avis de nomination défectueux et insuffisants. L'entreprise a fixé le 14 mars 2025 comme date de référence pour que les actionnaires agissent par consentement écrit concernant la tentative de Sherwood de remplacer l'ensemble du Conseil d'Administration.
Le Comité Exécutif affirme que Sherwood tente de prendre le contrôle sans offrir de prime ni présenter de stratégie alternative. Récemment, l'entreprise a proposé un règlement dans lequel cinq des sept directeurs seraient des personnes approuvées par Sherwood, avec Sherwood devenant Président, mais cette proposition a été rejetée. Il est à noter que Sherwood tente maintenant de retirer son propre candidat précédent, Doug Woodrum.
Dans un développement séparé, Barnwell a signé une lettre d'intention non contraignante pour vendre sa filiale de puits d'eau, dans le cadre de sa stratégie visant à se concentrer sur son activité principale d'exploration pétrolière et gazière et à réduire les dépenses administratives. L'entreprise prévoit de tenir son Assemblée Générale de 2025 au troisième trimestre de l'exercice 2025.
Barnwell Industries (NYSE: BRN) hat angekündigt, dass sein Exekutivkomitee die Vorstandskandidaten von Ned Sherwood für die Jahreshauptversammlung 2025 aufgrund fehlerhafter und unzureichender Nominierungsankündigungen disqualifiziert hat. Das Unternehmen hat den 14. März 2025 als Stichtag für die Aktionäre festgelegt, um schriftlich über Sherwoods Versuch zu entscheiden, den gesamten Vorstand zu ersetzen.
Das Exekutivkomitee behauptet, Sherwood versuche, die Kontrolle zu erlangen, ohne eine Prämie anzubieten oder eine alternative Strategie vorzulegen. Das Unternehmen hatte kürzlich einen Vergleich angeboten, bei dem fünf der sieben Direktoren von Sherwood genehmigte Personen sein sollten, wobei Sherwood Vorsitzender werden würde, aber dieser Vorschlag wurde abgelehnt. Bemerkenswert ist, dass Sherwood jetzt versucht, seinen eigenen vorherigen Kandidaten, Doug Woodrum, abzulehnen.
In einer separaten Entwicklung hat Barnwell eine nicht verbindliche Absichtserklärung zur Veräußering seiner Tochtergesellschaft für Wasserbrunnen unterzeichnet, als Teil seiner Strategie, sich auf das Kerngeschäft der Öl- und Gasexploration zu konzentrieren und die Verwaltungskosten zu senken. Das Unternehmen plant, seine Jahreshauptversammlung 2025 im dritten Quartal des Geschäftsjahres 2025 abzuhalten.
- Strategic divestment of water well subsidiary to focus on core oil & gas business
- Initiative to reduce general and administrative expenses
- Ongoing board control dispute creating significant company expenses
- Corporate governance instability due to proxy fight
- Failed settlement attempts with major shareholder
Insights
Barnwell Industries' board conflict with shareholder Ned Sherwood has escalated significantly, representing a material governance risk for the company. The board's disqualification of Sherwood's nominees on technical grounds and Sherwood's subsequent move to a consent solicitation indicates a deeply adversarial relationship that will likely consume management bandwidth and corporate resources.
The governance dispute is particularly concerning as Sherwood is attempting to gain complete board control without offering other shareholders any control premium, essentially seeking to acquire effective ownership at market prices. This type of creeping takeover attempt typically disadvantages non-participating shareholders who miss the opportunity to receive a buyout premium.
While the company mentions plans to sell its water well subsidiary to focus on oil and gas exploration, this strategic shift is overshadowed by the governance battle. The pending consent solicitation with a March 14 record date creates near-term uncertainty, as the outcome will determine who controls Barnwell's future direction.
The rejected settlement proposal (where Sherwood would have gained significant but not complete board representation) suggests his aim is absolute control rather than collaborative influence, raising questions about his intentions for the company. Notably, the current board was previously approved by Sherwood under a 2023 settlement, indicating a particularly volatile governance situation with rapidly shifting alliances.
Barnwell Industries' ongoing board dispute with shareholder Ned Sherwood presents substantial financial risk for investors. While proxy contests are not uncommon, the particularly contentious nature of this situation suggests potential operational disruption during a critical period when the company is attempting to strategically reposition itself.
The planned divestiture of the water well subsidiary represents a significant shift in Barnwell's business mix but lacks critical details regarding valuation or expected impact on cash flow. This transaction appears to be part of a broader initiative to streamline operations and reduce G&A expenses, which could potentially improve profitability if executed properly.
The financial implications of this governance battle extend beyond the direct costs of dueling proxy materials and legal expenses. Research consistently shows that prolonged board disputes typically correlate with underperformance in operational metrics as management focus diverts to governance issues rather than business execution.
A particularly concerning aspect is Sherwood's failure to articulate any alternative business strategy despite his aggressive push for control. This creates uncertainty about the company's future direction and raises questions about whether his primary objective is enhancing long-term shareholder value or achieving some other goal. For existing shareholders, the absence of a control premium in what amounts to a de facto takeover attempt represents a potential transfer of value from passive investors to an activist shareholder.
Sets March 14, 2025, as Record Date for Shareholders to Act by Written Consent in Connection with Sherwood’s Latest Self-Serving Campaign to Take Control of Barnwell
Sherwood’s Consent Solicitation is Yet Another Attempt to Steal the Company from Shareholders Without Paying a Premium for Control
HONOLULU, March 05, 2025 (GLOBE NEWSWIRE) -- Barnwell Industries, Inc. (NYSE American: BRN) (“Barnwell” or the “Company”) today announced that the Executive Committee of the Barnwell Board of Directors has disqualified the controlling slate of director nominees submitted by one of its shareholders, Ned Sherwood, in connection with 2025 Annual Meeting of Shareholders.
As previously disclosed on February 25, 2025, the Executive Committee informed Sherwood that it rejected his nomination notice because it was defective and insufficient as it failed to include material information required by both the Company’s bylaws and federal securities regulations.
Barnwell Sets Record Date for Sherwood’s Consent Solicitation
Sherwood Continues to Seek Control of Barnwell with NO PLAN Other than to
Take Control of the Company
Sherwood is now aggressively pursuing shareholder approval to replace the entire Barnwell Board of Directors. This is yet another attempt by Sherwood to seize control of Barnwell at the expense of its public shareholders, without offering any premium for control. Moreover, despite repeated requests from the Company over several months, Sherwood has failed to present any alternative strategy for the Company, and after many months, his so-called plan is still forthcoming.
Furthermore, Sherwood is now attempting to oust his own nominee, Doug Woodrum, a current Barnwell Board member, who was part of Sherwood’s slate for the upcoming 2025 Annual Meeting. Notably absent from Sherwood’s Consent Solicitation is another previously chosen nominee, Sherwood’s Chief Investment Officer, Ben Pierson, who was secretly buying Barnwell shares throughout 2024 while Sherwood was party to a Cooperation Agreement with the Company.
Sherwood’s latest attempt to replace the entire Barnwell Board with his slate of hand-picked nominees continues his long history of disrupting the Company’s governance processes and interfering with the Company’s operations, while creating significant expense to the Company. Indeed, the Executive Committee has sought several times to avoid the cost and distraction of Sherwood’s actions, including a recent settlement offer whereby five of seven directors would be individuals expressly approved by Sherwood who would then become Chairman of the Board. However, Sherwood’s sole interest appears to be to have
Barnwell shareholders of record as of the close of business on March 14, 2025, are eligible to execute, withhold and revoke written consents. Barnwell expects to file preliminary consent revocation materials with the Securities and Exchange Commission (the "SEC") in response to the preliminary consent solicitation statement filed by Sherwood on March 4, 2025.
The Barnwell Executive Committee Comprises Majority Independent and
Highly Experienced Directors Acting on Behalf of All Shareholders
As Barnwell has disclosed, the current Board was expressly approved by Sherwood under a 2023 settlement whereby the Company and Sherwood each designated two directors. At that time, a fifth director, Joshua Horowitz, was selected as a compromise board member and was vetted by Sherwood and expressly endorsed by both parties to the settlement agreement.
The Company also separately announced today that it has entered into a non-binding letter of intent to sell its water well subsidiary, as part of its ongoing plan to refocus on its core oil and gas exploration business and reduce general and administrative expenses, all of which actions have been previously endorsed by Sherwood.
The Barnwell Executive Committee will continue to take actions that it believes represent the best interest of ALL Barnwell shareholders.
The Company also announced that it expects to hold its uncontested 2025 Annual Meeting of Shareholders in its fiscal third quarter (second calendar quarter) of 2025. The record date and meeting date for the 2025 Annual Meeting have not yet been set.
Forward-Looking Statements
The information contained in this press release contains “forward-looking statements,” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. A forward-looking statement is one which is based on current expectations of future events or conditions and does not relate to historical or current facts. These statements include various estimates, forecasts, projections of Barnwell’s future performance, statements of Barnwell’s plans and objectives, and other similar statements. Forward-looking statements include phrases such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “predicts,” “estimates,” “assumes,” “projects,” “may,” “will,” “will be,” “should,” or similar expressions. Although Barnwell believes that its current expectations are based on reasonable assumptions, it cannot assure that the expectations contained in such forward-looking statements will be achieved. Forward-looking statements involve risks, uncertainties and assumptions which could cause actual results to differ materially from those contained in such statements. The risks, uncertainties and other factors that might cause actual results to differ materially from Barnwell’s expectations are set forth in the “Forward-Looking Statements,” “Risk Factors” and other sections of Barnwell’s annual report on Form 10-K for the last fiscal year and Barnwell’s other filings with the Securities and Exchange Commission. Investors should not place undue reliance on the forward-looking statements contained in this press release, as they speak only as of the date of this press release, and Barnwell expressly disclaims any obligation or undertaking to publicly release any updates or revisions to any forward-looking statements contained herein.
Important Additional Information and Where to Find It
Barnwell Industries, Inc. (the “Company”) plans to file proxy materials with the U.S. Securities and Exchange Commission (the “SEC”) in connection with the solicitation of proxies for the Company’s 2025 annual meeting of stockholders (the “2025 Annual Meeting”) and plans to file a consent revocation statement in connection with the Sherwood Group’s consent statement which, among other things, seeks to remove and replace the current members of the Board of Directors of the Company. Prior to the 2025 Annual Meeting, the Company will file a definitive proxy statement (the “Proxy Statement”) together with a WHITE proxy card. The Company will also file a definitive revocation statement (the “Revocation Statement”) together with a WHITE revocation card. STOCKHOLDERS ARE URGED TO READ THE PROXY STATEMENT AND THE REVOCATION STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) AND ANY OTHER RELEVANT DOCUMENTS THAT THE COMPANY WILL FILE WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Stockholders will be able to obtain, free of charge, copies of the Proxy Statement, the Revocation Statement and any amendments or supplements thereto and any other documents (including the WHITE proxy card and WHITE revocation card) when filed by the Company with the SEC at the SEC’s website (http://www.sec.gov) or at the Company’s website at https://ir.brninc.com/ or by contacting Alexander Kinzler, Secretary and General Counsel of the Company, by phone at (808) 531-8400, by email at akinzler@brninc.com or by mail at Barnwell Industries, Inc., 1100 Alakea Street, Suite 500, Honolulu, Hawaii 96813.
Certain Information Regarding Participants
The Company, its directors and certain of its executive officers and other employees may be deemed to be “participants” (as defined in Section 14(a) of the Securities Exchange Act of 1934, as amended) in the solicitation of proxies from stockholders in connection with the 2025 Annual Meeting. Additional information regarding the identity of these potential participants and their direct or indirect interests, by security holdings or otherwise, will be set forth in the Proxy Statement and other materials to be filed with the SEC in connection with the 2025 Annual Meeting. Information relating to the foregoing can also be found in the Company’s definitive proxy statement for its 2024 annual meeting of stockholders, filed with the SEC on April 2, 2024. To the extent holdings of such participants in the Company’s securities have changed since the amounts described in the Proxy Statement, such changes have been reflected on Statements of Change in Ownership on Form 3 and Form 4 filed with the SEC: Form 3, filed by Craig Hopkins, with the filings of the Company on May 16, 2024; Form 4, filed by Craig Hopkins, with the filings of the Company on May 20, 2024, August 29, 2024, January 13, 2025 and January 17, 2025; Form 4, filed by Joshua Horowitz, with the filings of the Company on August 23, 2024 and October 28, 2024; Form 4, filed by Kenneth Grossman, with the filings of the Company on October 28, 2024; and Form 4, filed by Douglas Woodrum, with the filings of the Company on October 28, 2024. These filings can be found at the SEC’s website at www.sec.gov. More detailed and updated information regarding the identity of potential participants, and their direct or indirect interests (by security holdings or otherwise), will be set forth in the proxy statement and other materials to be filed with the SEC. These documents can be obtained free of charge from the sources indicated above.
CONTACTS:
Investors:
Bruce Goldfarb / Chuck Garske
(212) 297-0720
info@okapipartners.com
Kenneth S. Grossman
Vice Chairman of the Board of Directors
Email: kensgrossman@gmail.com
FAQ
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