Key Summary: Arena Investors (10%) urges board improvement due to a 78% stock decline. They recommend specific actions for value enhancement, criticizing the board's lack of response to engagement efforts. Kenneth Orr (9.5%) demands records inspection to probe potential misconduct, focusing on disputes, telecom operations, and governance concerns.Market Cap: $19 million| Charge Enterprises Inc. operates as an electrical, broadband, and electric vehicle (EV) charging infrastructure company.
Background
On August 21, 2023, Arena Investors (10%) sent a letter to the Board urging them to improve management and operations due to a 78% stock decline in a year. Arena believes better leadership can drive profits, growth, and electric vehicle charging expansion. However, Arena criticized the current board for not responding to six months of private engagement, impeding crucial performance improvements.
On September 11, 2023, Arena Investors (10%) sent a letter to the Board expressing concerns about the underperformance of the stock and urged the board to take specific actions to enhance the company's value for shareholders. Arena's key recommendations and concerns include: (i) Elimination of a Staggered Board Structure, (ii) Reinvigoration of the Board, (iii) Changes in Management/Operations, (iv) Engaging a Professional Interim Advisor, (v) Integration and Incentivization of Subsidiaries, (vi) Revisiting General and Administrative Costs, and (vii) Rationalize Cost of Capital. In conclusion, Arena expressed its commitment to Charge's long-term potential but insisted on immediate and comprehensive actions to improve the company's performance and value for shareholders.
Update
On February 13, 2024, Kenneth Orr (9.5%) submitted a demand letter to inspect books and records. The request aims to investigate potential wrongdoing, mismanagement, conflicts of interest, corporate waste, and breaches of fiduciary duties by certain members of the management team and Board of Directors. Key areas of focus include disputes with Arena Investors LP over debt agreements, allegations related to the company's telecom business operations, and concerns about potentially conflicted and self-interested management. Source
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