NEW YORK--(BUSINESS WIRE)--MG Capital Management, Ltd. (together with Percy Rockdale LLC, the nominating stockholder, and its affiliates, “MG Capital” or “we”), a significant stockholder of HC2 Holdings, Inc. (NYSE:HCHC) (“HC2” or the “Company”), which collectively with the other participants in its solicitation beneficially owns more than 6% of the Company’s outstanding shares, today commented on HC2’s announcement regarding CEO Philip Falcone’s decision to not receive incentive compensation until the Company’s stock price reaches $7.50 per share. Additional important information is available for stockholders at www.ABetterHC2.com.
Michael Gorzynski, MG Capital’s founder and managing partner, commented:
“Mr. Falcone has reaped approximately $60 million in compensation over the past six years as he ran HC2 into the ground – and this afternoon’s desperate, last-minute ploy does not change that. If Mr. Falcone really cared about stockholders and wanted to align himself with them, he should have done so long before bleeding HC2 dry and pushing it to the brink of bankruptcy. Instead, he wrote another case study in recent years on how to egregiously mismanage a business and destroy value for anyone that entrusts him with capital.
We believe it's important that Mr. Falcone return all of the compensation, restricted stock and options that he has been awarded as a result of opaque related party transactions and the inappropriate NAV schemes that he has cooked up with the Board. A core tenant of our plan is to recover any and all inappropriate payments made to Mr. Falcone and his allies.
In contrast to the current Board, MG Capital’s nominees have committed to slashing director fees by 50% and I have committed to accepting $1 for any service as interim CEO. If Mr. Falcone and his fellow directors were as committed to stockholder value as they claim to be, they would have matched those pledges. And they would have also outlined a plan for delivering close to the $9 per share in value that we believe is achievable under our strategy.
Stockholders need to recognize that Mr. Falcone and his current – and incoming – allies on the Board appear more focused on self-interests than stockholder value. MG Capital will continue to make that very clear as we reinforce our case for change and highlight our nominees’ superior strategy. We will remain a stockholder champion at HC2.”
We urge HC2 stockholders to consent to all three proposals on the GREEN consent card and return it in your postage-paid envelope provided. The consent deadline is May 7, 2020.
Should you have any questions or need assistance with voting, please contact Saratoga Proxy Consulting LLC at (888) 368-0379 or (212) 257-1311 or by email at firstname.lastname@example.org.
PROTECT YOUR INVESTMENT. SIGN, DATE AND RETURN YOUR FILLED OUT GREEN CONSENT CARD TODAY.
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