Key Summary: In March 2022, ETFS Capital and Lion Point Capital sought board changes, leading to nominee submissions and settlement by May 27, 2022. In April 2023, ETFS reiterated concerns, filed proxies, and gained ISS and Glass Lewis recommendations. Despite obstacles, one nominee was elected in June 2023. In March 2024, ETFS criticized WisdomTree's DeFi strategy, proposing a strategic review for shareholder value enhancement, intending to withhold votes at the next meeting. At the AGM held on June 12, 2024, shareholders elected all the company's director nominees to the Board.Market Cap: $1.4 billion | WisdomTree Investments, Inc., through its subsidiaries, operates as an exchange-traded funds (ETFs) sponsor and asset manager..
In March 2022, ETFS Capital Limited and Lion Point Capital expressed desires for board and management changes at a company, leading to the nomination of three candidates for the Board at the 2022 AGM. Settlement discussions ensued, resulting in an agreement on May 27, 2022, appointing two independent members. In April 2023, ETFS Capital reiterated concerns, launched a website, and issued open letters to shareholders. Proxy materials were filed seeking support for nominees, and ISS and Glass Lewis recommended ETFS Capital's candidates. Despite initial challenges, one of ETFS Capital's nominees was elected to the board in June 2023.
On March 21, 2024, ETFS Capital Limited (10.2%) released a letter addressing concerns regarding the company's performance and governance. The letter criticized WisdomTree's strategy shift towards DeFi (Decentralized Finance), highlighting failures in core ETF management and unsuccessful DeFi initiatives. ETFS Capital proposed a strategic review process to maximize shareholder value, suggesting options like selling parts of the business, returning capital to shareholders, or restructuring the company's leadership. ETFS Capital intends to withhold votes from the Board at the upcoming shareholder meeting to signal dissatisfaction and encourages other shareholders to do the same.
On April 17, 2024, ETFS Capital Limited urged shareholders to vote against specific directors to signal dissatisfaction and demand change. They emphasized the significance of shareholder votes and urged support for their proxy solicitation. Source
On April 30, 2024, ETFS Capital Limited urged shareholders to vote against the re-election of certain board members, citing their support for the DeFi strategy. ETFS emphasized the importance of shareholder input and urged support for their efforts by returning the enclosed GOLD proxy card.
On May 14, 2024, ETFS Capital Limited issued a press release urging the company to halt its conflict with stockholders and initiate a strategic review process. ETFS Capital believes WisdomTree's ETF business is undervalued and suggests strategic alternatives such as a sale of part or all of the business or significant restructuring. The press release encourages stockholders to vote against the re-election of Chairman Win Neuger, Director Anthony Bossone, and CEO and Director Jonathan Steinberg to push for a strategic review and value unlocking measures.
On May 21, 2024, ETFS issued an Investor Presentation titled “Unlock Value at WisdomTree” and issued a press release emphasizing the significant undervaluation of WisdomTree and the necessity for an independent strategic review. They urge stockholders to vote against the re-election of Chairman Win Neuger, Director Anthony Bossone, and CEO Jonathan Steinberg.
On May 28, 2024, ETFS issued a Rebuttal Investor Presentation titled “Setting the Record Straight” highlighting the Board’s failure to address ETFS Capital’s claims that the company’s core ETF business is undervalued.
At the AGM held on June 12, 2024, shareholders elected all the company's director nominees to the Board.
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