NEW YORK--(BUSINESS WIRE)--Cornwall Capital Management, LP (“Cornwall”), an investment manager whose funds beneficially own approximately 26% of the outstanding shares of Keweenaw Land Association, Limited (OTC Pink:KEWL) (“Keweenaw” or the “company”), today announced that Institutional Shareholder Services Inc. (“ISS”), the nation’s leading independent proxy advisory firm, has recommended that Keweenaw shareholders vote the WHITE proxy card FOR the election of Cornwall’s highly-experienced nominees – Mr. Ian Haft and Mr. Steve Winch – in connection with Keweenaw’s Annual Meeting of Shareholders to be held April 12, 2018. ISS’s recommendation follows one issued earlier this week by Egan-Jones Proxy Services (“Egan-Jones”) to vote on the WHITE proxy card FOR ALL THREE of Cornwall’s nominees.
James Mai, Managing Member of Cornwall GP and General Partner of Cornwall Master LP, said, “We are very pleased that two leading proxy advisory firms, ISS and Egan-Jones, recognize that change at the board level is required to address the company’s prolonged underperformance and poor corporate governance standards. We urge shareholders to vote the WHITE proxy card today to elect ALL THREE of Cornwall’s nominees, whom we are confident have the deep strategic, financial and board experience required to restore value to Keweenaw and act as true stewards of shareholders’ trusted capital. If elected, Cornwall’s nominees pledge to act as fiduciaries to shareholders and execute Cornwall’s straightforward 4 Point Plan to grow the company’s cash flows, improve its operating margins, and implement best practice corporate governance.”
In its report, ISS* highlighted Cornwall’s “compelling case that incremental board change in warranted,” noting:
- “Keweenaw's TSR has significantly lagged both a broad index and the median of its peers, near-term and longer-term. This reflects underwhelming fundamental performance, as the company has been unable to leverage increased volume into higher profits and meaningfully expand outside its core timber business.”
- “Corporate governance remains substandard, as Keweenaw's classified board includes four apparently entrenched directors, with tenures of at least 24 years each, who have presided over the company's underperformance and six costly and distracting proxy fights during the last decade. All these factors demonstrate that the dissident has presented a compelling case that additional change at the board level is needed.”
- “The dissidents have outlined more concrete plans to enhance corporate governance, such as declassifying the board, and to improve the balance sheet, by stopping acquisitions and more aggressively seeking to sell assets. These appear to be solid objectives…”
More information about Cornwall and its solicitation of proxies in connection with Keweenaw’s Annual Meeting of Shareholders may be found here: http://www.innisfreema.com/annual/KEWL/.
*Cornwall has neither sought nor obtained consent from ISS to use previously published information in this press release.
Vote your WHITE proxy card TODAY.
In connection with its solicitation of proxies for the 2018 annual meeting of Keweenaw Land Association, Limited (the “Company”), Cornwall Capital Management, L.P. and certain of its affiliates (collectively, “Cornwall”) intend to make available additional information to the shareholders of the Company. CORNWALL STRONGLY ADVISES ALL COMPANY SHAREHOLDERS TO READ ALL ADDITIONAL INFORMATION WHEN IT BECOMES AVAILABLE BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION.