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TAMPA, Fla., April 13, 2022 (GLOBE NEWSWIRE) -- The following is a statement issued by Dave Kanen, who serves as Managing Director at Kanen Wealth Management:
Dear Lazydays Holdings, Inc. board,
We are appalled by your continued obstinacy and silence to our most recent letters. Do you not believe that minority shareholders are worthy of receiving a response to the serious issues we laid out in our previous letters?
The following summarizes the state of affairs with the Lazydays board:
Our Chairman, Mr. Christopher Shackelton, Co-founder and Managing Partner of Coliseum Capital, an approximately $2.1B Hedge Fund - in our opinion is putting his interests above those of minority shareholders by continuing to collect an 8% dividend so long as our stock is below $25 per share. Under his Chairmanship, and with the unanimous consent of the board, the company has rejected a $25 bid from B. Riley with no explanation. Furthermore, you have not been forthcoming regarding a strategic alternatives process, nor have you laid out the case for value creation should LAZY remain independent.
In our opinion, the remaining directors have not acted in an appropriate manner as fiduciaries – that represent MINORITY SHAREHOLDERS. In effect, they have rubber stamped the best interests of a large Hedge Fund.
Director Ms. Erika Serow, you are Chief Marketing Officer of Bain & Co. Based on last year’s proxy, you get paid $110,000 per year and do not own any equity outside of 14,218 option grants given for free. You are not standing up for minority shareholders, but rather are enabling a large Hedge Fund to benefit disproportionally to us. Many of Kanen Wealth Management’s investors are regular middle-class Americans. Start doing your job and stick up for them. You work at a highly respected consulting firm Bain and Co. and you should know better. Stand up for the little guy and get to it!
Mr. Jordan Gnat, CEO of Playmaker Capital Inc. and owner of 19,218 options that were given to you – we are calling on you as the CEO of a publicly traded Canadian company to behave as a responsible executive and put minority shareholder interests first. It is beneath you to continue the status quo and do nothing!
Mr. Jerry Comstock, you are a seasoned restaurant executive and have been on our board since 2018. Sir, please stand up and do the right thing. In our opinion, you have brought little value thus far to Lazydays shareholders despite your credentialed resume. Prove to us that you are worthy of serving Lazydays shareholders.
Mr. James Fredlake, you have extensive executive leadership experience, but to our knowledge have not gone to bat for minority Lazydays shareholders. By your “sin of omission” in not standing up for us you are complicit in enabling the disproportionate benefit to Coliseum Capital and Mr. Shackelton.
Dear Mr. DeVincenzi, we implore you as interim CEO and “Lead Independent Director” to “ACTUALLY LEAD”. We question your true independence given the prior business history with Mr. Shackelton at Universal Technical Institute. To date, you have not stood up to Lazydays’s multibillion-dollar Hedge Fund Chairman on behalf of us minority shareholders!
In summary, Lazydays board, you have not done your job thus far in protecting our interests. You have not been transparent. You have not revealed if you are running a formal strategic alternatives process including if we have investment bankers. Our stock is 20% below the B. Riley bid and you HAVE NOT laid out the case for remaining independent and how you will increase shareholder value, should a sale not occur. As per recent filings, you have little alignment. Lazydays board, you are officially being put on notice! You are accountable to all shareholders. Enacting a “policy of appeasement” towards Mr. Shackelton is unacceptable.