Egan-Jones Recommends Keweenaw Shareholders Support Dissident Cornwall Master's Proxy and Nominees
In this report the EJP analyst highlighted the following reasons for supporting the dissidents:
· In our view, Keweenaw's abysmal performance over the last 10 years has led to value destruction instead of maximizing its returns and enhance competitiveness relative to its peers. We believe that consistent underperformance is unacceptable given the business' potential to be at par among its peers.
· Taking into consideration the Company's operating expenses, in our view, there is a misuse of cash flow in lucrative board expenses that dampened Keweenaw's revenues.
· We believe that under the incumbent Board and management, the Company has been lacking strategic direction, but instead, engaged in a premature acquisition strategy that delivered undesirable results and increased debt burden.
· The Company has a poor corporate governance structure which is the root cause of an entrenched and insulated Board…
· We believe that Cornwall's Four Point Plan will unlock the Company's potential and will give direction to the Company's strategies in maximizing shareholder value. As an asset-based company, we believe the Four Point Plan will repair the Company's balance sheet by strengthening its non-core assets and investment portfolio.
· We believe that Cornwall's nominees, given their qualifications and expertise, will reinforce the Board and management in addressing operational inefficiencies and strengthen corporate governance.
For questions on this or any other EJP reports please contact Kevin McManus, Vice President and Director of Proxy Services, using the contact details below.
Vice President and Director of Proxy Services
Egan-Jones Proxy Services
61 Station Road
Haverford, PA 19041
Egan-Jones Proxy Services ("EJP") is a leading provider of independent proxy research, voting recommendations and voting services to a variety of institutional investors. EJP assists institutional fiduciaries in determining voting directions as well as assisting in the administrative submission of proxy voting, and provides research, recommendations, voting, and voting record retention services on various shareholder proxy voting matters. EJP was established in 2002 by the Egan-Jones Ratings Co., Inc. ("EJR"), a nationally recognized statistical rating organization ("NRSRO") as designated by the U.S. Securities and Exchange Commission. EJR provides credit rating services for primarily institutional clients. EJP is a related division of EJR, and is not a subsidiary or stand-alone corporate entity. EJP and EJR have physical and electronic safeguards in place to prevent conflicts of interest and the sharing of client data.