What’s New in Activism – Voss Defends Chairs at Thunderbird
Thunderbird Entertainment Group Inc (CVE: TBRD ) agreed to add Voss Capital’s Asha Daniere and Mark Trachuk to its board and include a third director on the board in a restructuring deal that will see the Canadian media production company launch a strategic review.
The third person will run for office in the seven-member Thunderbird in the upcoming March 6 election, the company said in a statement Thursday.
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Thunderbird also agreed to create an advisory committee responsible for evaluating the company’s capital allocation strategy and evaluating “all strategic opportunities to increase value.”
During the proxy contest, Railroad Ranch Capital Management sided with Voss, supporting the idea that the study would help unlock the value held in Thunderbird. Railroad said the company’s stock is not showing a “good direction” in fundamentals.
Weekly activism chart
In the 12 months ending January 19, 2023, 52 energy companies worldwide went public at the request of activists. That compares to 43 in the 12 months ending January 19, 2022.
Source: Insightia | Activism
What’s New in the Proxy Poll – ISS & Glass Lewis was asked beyond ESG
A group of 21 state attorneys general wrote to the Center for Shareholder Services (ISS) and Glass Lewis, asking whether their ESG policies could violate their legal obligations to state investment vehicles.
In a letter of January 17, the government officials said that both of them may have violated their legal and contractual duties as advocates, by advocating and working in accordance with the goals of climate change, and promoting and working in accordance with diversity, equality, and inclusion.
The letter adds “We ask that these recommendations, and the policies that led to them, are based on the financial interests of the beneficiaries of the investment rather than other social goals and, if they are based on the latter, how they are compatible with your activities.”
Moreover, your efforts to force the companies identified by the Climate Action 100+ to achieve ‘net-zero emissions’ and to ‘set short- and medium-term targets’ in accordance with the Paris Agreement seem to be unsupported by your purely economic work. investment value,” the letter argued.
The group gave a deadline of January 31 by which Glass Lewis and the ISS were asked to respond.
Weekly voting chart
There were 651 shareholder proposals voted on in Russell’s 3000 companies in 2022, a record high in recent years.
Source: Insightia | Voting
What’s New in Iceberg Shorts at BigBear.ai
Iceberg Research accused BigBear.ai Holdings Inc (NYSE: BBAI ) of pumping up its stock with misleading reports and said the consulting firm has a rapid burn rate that could lead to more share issuance.
“With the funding gap, low liquidity, and rapid burn rate, BigBear will have to resort to dilutive funding. We expect pressure on the stock and expiration of options by the end of this week,” said Iceberg in the series tweets on January 17th.
Iceberg said that BigBear’s news release was misleading because the contract is, in fact, a competitive award, which means the company will have to compete with 93 other companies for future orders.
The short seller also questioned BigBear’s technology, saying the company may present itself as an AI-powered advisor to attract capital to the first public in December 2021, which is happening in conjunction with a special purpose acquisition company.
Short weekly chart
In the 12 months ending January 20, 2023, 20 activists of short campaigns alleged that the product does not work against the company. That’s up from 10 in the 12 months ending January 20, 2022.
Source: Insightia | Activist briefs
Quote of the Week
This week’s quote comes from AmeriServ on a letter criticizing the Driver’s Administration for launching a proxy contest. Read our report Right here.
“We hope that the company will appreciate that our board cannot indifferently agree to the demands of the 8.1% shareholder to nominate 33% of the company’s directors and take leadership roles in several committees.” – AmeriServ Financial