Key Summary: On April 11, 2024, ZimCal Asset Management, along with partners, launched restoretheshine.com, aiming to revitalize the company by advocating for leadership changes and prioritizing shareholder interests. They nominated two nominees to the Board. At the AGM held on June 11, 2024, shareholders elected the company's nominees to the Board. KORR Acquisitions Group (4.4%) proposed governance changes in February 2021, urging MFIN's value enhancement. They nominated directors in December 2021 amid an SEC lawsuit, repeating their demands in February 2022. After a Cooperation Agreement on May 2, 2022, MFIN announced a $35 million stock repurchase program and added independent directors, leading to the withdrawal of KORR's nominees.Market Cap: $193 million | Medallion Financial Corp., together with its subsidiaries, operates as a finance company in the United States. It originates, acquires, and services loans that finance taxi medallions and various types of commercial businesses.
ZimCal Asset Management
On April 11, 2024, ZimCal Asset Management, Stephen Hodges, BIMIZCI Fund, LLC, and Warnke Investments LLC (collectively, “ZimCal”) launched a website, www.restoretheshine.com, to communicate with the stockholders of the company in connection with the 2024 AGM. The presentation aimed to revitalize the company by advocating for changes in leadership and governance to prioritize shareholder interests. It highlighted the company's underperformance compared to peers and proposed five steps to improve its prospects, including enhancing the board, resolving an SEC complaint, and focusing on the core lending business. Two board nominees, Stephen Hodges and Judd Deppisch, were introduced as candidates with relevant experience. Overall, the presentation called for accountability and strategic focus to restore shareholder value.
On April 26, 2024, ZimCal Asset Management along with its affiliates, urged fellow stockholders to vote for their two nominated directors.
On May 21, 2024, ZimCal Asset Management issued a presentation and letter to the shareholders urging them to vote for their nominees.
On May 28, 2024, ZimCal Asset Management issued a letter to the shareholders urging them to vote for their nominees.
On June 10, 2024, ZimCal Asset Management issued a presentation to the shareholders urging them to vote for their nominees.
At the AGM held on June 11, 2024, shareholders elected the company's nominees to the Board.
KORR Acquisitions Group
On March 31, 2021, KORR Acquisitions Group (4.4%) encourage the Board to improve its corporate governance by adding additional Board members with more relevant experience. Also, it stated that in February 2021, it has released a presentation regarding its proposals to remedy the company's underperformance and maximize value for all shareholders. In its presentation, KORR is pushing for change that it believes will unlock MFIN's true value of over $20 per share. It encourages the company to, (i) change its name, (ii) repurchase shares, (iii) consolidate office locations, (iv) reduce headcount, (v) sell non-core assets, (vi) re-align senior management compensation with shareholders, (vii) segregate Medallion loans.
On June 30, 2021, KORR Acquisitions Group delivered a letter to the company demanding inspection of certain of the company’s books and records.
On December 30, 2021 KORR Value (5.6%) delivered a letter to the company nominating a slate of two candidates, Andrew S. Fox and Philip P. Scala for election to the Board at the 2022 AGM. In the press release and letter, KORR Value expressed their deep concerns with a lawsuit recently filed by the SEC making alarming allegations of fraudulent schemes perpetrated by the company and its President Andrew Murstein to boost the company’s stock price and urged, among other things, for Andrew Murstein and Alvin Murstein to resign from the Board, for the Board to immediately appoint the Nominees to fill the resulting vacancies and for the Board to form a Special Committee of the Board to investigate and respond to the SEC allegations with the assistance of independent legal counsel. KORR Value also set forth various recommendations to enhance stockholder value, including the divestment of underperforming assets and reduction of unnecessary costs.
On February 28, 2022, KORR Value (5.7%) sent a letter to the Board reinforcing the urgent need for governance and strategic change. It urges independent directors to honor their fiduciary duties to all shareholders by facilitating sorely-needed governance improvements and exploring strategic alternatives.
On May 2, 2022, the company announced the Board has authorized a new stock repurchase program of $35 million. In conjunction with this authorization, Medallion Financial terminated its existing stock repurchase program. The Board has also announced that it will add two new independent directors to its Board of Directors and has created a Lead Independent Director position on the Board. In connection with these changes, the Company has entered into a Cooperation Agreement with ORR Value. Under the terms of the agreement, KORR has agreed to withdraw its director nominees for the Company’s 2022 AGM.
댓글