Voss Capital gets seats in Thunderbird Entertainment
January 24, 2023
What’s New in Activism – Voss Secures Seats at Thunderbird
Thunderbird Entertainment Group Inc (CVE:TBRD) has agreed to add Voss Capital’s Asha Daniere and Mark Trachuk to its board of directors and include a third director on the management slate in a settlement agreement that will also see the Canadian media production company launch a strategic review.
That third person will run for election on Thunderbird’s seven-person slate in the upcoming March 6 election, the company said in a statement Thursday.
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Thunderbird also agreed to create an advisory board to review the company’s capital allocation strategy and evaluate “all strategic opportunities to maximize value.”
During the proxy fight, Railroad Ranch Capital Management sided with Voss, backing the idea that a review would help unlock value trapped at Thunderbird. Railroad said the company’s shares did not reflect the “positive trajectory” of its fundamentals.
Table of activism of the week
In the 12 months ending January 19, 2023, 52 energy companies around the world were publicly subjected to militant demands. This is compared to 43 in the 12 months ending January 19, 2022.
Source: Insightia | Activism
What’s new in proxy voting – ISS and Glass Lewis interviewed on ESG
A group of 21 Republican state attorneys general wrote to Institutional Shareholder Services (ISS) and Glass Lewis, questioning whether their ESG policies might violate their legal obligations to state investment vehicles.
In the Jan. 17 letter, state officials said the two potentially breached their legal and contractual obligations as proxy advisers, advocating for and acting on climate change goals, and advocating for and acting on climate change goals. to diversity, equity and integration quotas.
The letter added “We question how these recommendations, and the policies that led to them, are based on the financial interests of the beneficiaries of the investment rather than on other social objectives and, if they are based on the latter, how this is in accordance with your duties.”
“Furthermore, your attempts to force companies identified by Climate Action 100+ to achieve ‘net zero emissions’ and ‘set short and medium term goals’ in accordance with the Paris Agreement do not appear to be supported by your duty. to consider only the economic value of investments,” the letter argued.
The group has set January 31 as the deadline by which Glass Lewis and ISS are asked to respond.
Table of votes of the week
There were 651 voted shareholder proposals in the Russell 3000 companies in 2022, a record in recent years.
Source: Insightia | Vote
What’s New in Activist Shorts – Iceberg Short at BigBear.ai
Iceberg Research accused BigBear.ai Holdings Inc (NYSE:BBAI) of pumping its shares through misleading claims and said the advisory firm had a rapid burn rate that would likely lead to more stock issues. dilutive.
“With a funding shortfall, low liquidity and a fast burn rate, BigBear will have to turn to dilutive funding. We expect pressure on the stock with options expiring at the end of this week,” said said Iceberg in a series of tweet January 17.
Iceberg said BigBear’s press release was misleading because the contract is, in fact, a competitive award, meaning the company will have to compete with 93 other companies for future orders.
The short seller also questioned BigBear’s technology, saying the company was likely being touted as an AI-powered consultant to attract capital for its December 2021 public debut, which took place through a merger with a special purpose acquisition company.
Shorts of the week chart
In the 12 months ending January 20, 2023, 20 short public activist campaigns alleged the product was ineffective against the company. This is an increase from 10 in the 12 months ending January 20, 2022.
Source: Insightia | Activist Shorts
quote of the week
This week’s quote comes from AmeriServ in a letter criticizing Driver Management for running a proxy contest. Read our cover here.
“We hoped the company would appreciate that our board could not blindly accept demands from an 8.1% shareholder to appoint 33% of the company’s directors and take on leadership roles in several committees.” – AmeriServ Financial