DALLAS, May 23, 2019 /PRNewswire/ -- Blue Lion
Capital, a Dallas-based investment
firm ("Blue Lion") that beneficially owns approximately 6.5% of the
stock of HomeStreet, Inc. (Nasdaq: HMST) ("HomeStreet" or the
"Company"), issued a statement today about the Company's failure to
fully engage with Dwight Capital regarding their expressed interest
in acquiring HomeStreet's Fannie Mae DUS lending operations and
related mortgage servicing rights.
Blue Lion stated:
"We were surprised and disappointed to learn yesterday from a
Dwight Capital press release that HomeStreet's Chairman and CEO
Mark Mason has apparently
misrepresented the interactions that took place between the two
firms dating back to 2017. On April
29, 2019, Dwight Capital expressed its interest in acquiring
HomeStreet's Fannie Mae DUS lending operations and associated
MSRs.
On April 30, HomeStreet stated
that it was "not aware of Dwight Capital's interest until their
press release, as they had not previously contacted us." The
Board of HomeStreet also pledged to review the letter and respond
as appropriate.
Now, it appears that HomeStreet's first statement was false and
the second a prelude to perfunctory action.
Dwight Capital openly disputed HomeStreet's assertion that the
Company was unaware of their interest as members of their
management team had sent emails to Mark
Mason in 2017 and 2018. Further, Mark Mason responded to the emails.
How can the Chairman of the Board and CEO have received and sent
emails and then claimed the Company knew nothing of Dwight
Capital's interest? Further, when HomeStreet's press release
stated it was "unaware of Dwight Capital's interest," was that the
Board speaking or simply a misrepresentation to the Board by its
Chairman and CEO?
Blue Lion does not know the people at Dwight Capital and we do
not know whether the transaction they would propose would be
attractive to HomeStreet. But, we do know that when a public
company makes a representation to shareholders, that representation
MUST be true.
It also appears that HomeStreet is not intending to
substantively consider Dwight Capital's expression of interest.
According to their press release, HomeStreet has refused to
even have a meeting or perform due diligence.
We continue to be astounded by what we believe to be the
inability of HomeStreet's Board to perform its fiduciary duties.
Blue Lion expects the Board to fully engage with Dwight
Capital and communicate truthfully to shareholders the outcome of
the discussions.
Blue Lion has nominated two seasoned financial professionals to
the Board of Directors at this year's annual meeting of HomeStreet
shareholders and recommends shareholders vote the
BLUE proxy card FOR the election of Charles W. Griege and Ronald K. Tanemura and FOR Blue Lion's
proposal to separate the roles of Chairman and CEO.
Blue Lion encourages its fellow shareholders to review its proxy
materials, investor presentations and shareholder letters, all of
which are available at www.FixHMST.com.
Important Information
Roaring Blue Lion Capital Management, L.P., Blue Lion
Opportunity Master Fund, L.P., BLOF II LP, Charles W. Griege, Jr. (collectively, "Blue
Lion") and Ronald K. Tanemura
(together with Blue Lion, the "Participants") have filed with the
Securities and Exchange Commission (the "SEC") a definitive proxy
statement and accompanying form of proxy to be used in connection
with the solicitation of proxies from shareholders of HomeStreet,
Inc. (the "Company"). All shareholders of the Company are advised
to read the definitive proxy statement and other documents related
to the solicitation of proxies by the Participants, as they contain
important information, including additional information related to
the Participants. The definitive proxy statement and an
accompanying proxy card is being furnished to some or all of the
Company's shareholders and is, along with other relevant documents,
available at no charge on the SEC website at http://www.sec.gov/ or
from the Participants' proxy solicitor, Morrow Sodali, LLC.
Information about the Participants and a description of their
direct or indirect interests by security holdings is contained in
the definitive proxy statement on Schedule 14A filed by Blue Lion
with the SEC on May 16, 2019. This
document is available free of charge from the sources indicated
above.
Investor Contact:
Blue Lion Capital Management
Justin Hughes
214-855-2430
Justin@bluelioncap.com
Shareholder Contact:
Morrow Sodali, LLC
Mike Verrechia / Bill Dooley
(800) 662-5200
BlueLion@MorrowSodali.com
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SOURCE Blue Lion Capital