TAMPA, FL, May 31, 2022 (GLOBE NEWSWIRE) -- The following is a statement issued by Dave Kanen, who serves as Managing Director at Kanen Wealth Management:
Dear Lazydays Inc. Board,
Approximately ten weeks have passed since your ill-advised, reflex rejection of B. Riley’s $25 per share bid for our company. Since that time, you have not articulated a value creation plan for our enterprise as a continuing entity. You have not repurchased a sufficient quantity of shares to meaningfully grow EPS. You have not run a formal strategic alternatives process. You have not adequately represented non-Coliseum Capital shareholders in regards to Chair Shackelton’s 8% dividend to the detriment of minority shareholders.
The state of affairs is such, at the present time that shares are trading 10 points below the recent bid and now need to climb almost 70% to be at parity with the previous bid for the company. It is very hard to interpret your director slate as being filled with WINNERS. In my opinion it is quite the opposite, and the stock price says it all.
What is even more appalling is your obtuse behavior. Not one peep from any of you! Your action, or lack thereof, equates to Mr. Shackelton being your overlord, to the mortal wounding of non-Coliseum shareholders. We have voted our shares against you and suppose other minority shareholders will do the same. We recommend the following dual track actions to correct your missteps: 1) Run a formal strategic alternatives process 2) Immediate Dutch tender of up to 5M shares at $19 3) Communicate the blueprint for long term value creation – should a sale at $25 or better not materialize.
Essentially you are enabling a billion-dollar hedge fund to the harm of minority holders. LAZY Board, we beseech you to take action in haste and reverse this awful LOSING course you have created.
Sincerely,
David Kanen
