Largest Equus Stockholder Group Issues Open Letter
May 07 2010 - 8:00AM
Business Wire
The Committee to Enhance Equus, which is collectively the
largest stockholder of Equus Total Return, Inc. (NYSE: EQS), owning
11.4% of the outstanding shares of the Company, today announced
that it has issued an open letter to stockholders in connection
with the Equus annual meeting of stockholders to be held May 12,
2010. The Committee urges all Equus stockholders to vote for core
change on the GOLD
proxy card today.
Following is the text of the letter from the Committee to
Enhance Equus:
THE COMMITTEE TO ENHANCE
EQUUS
May 7, 2010
Dear Equus Stockholder,
The Committee to Enhance Equus is collectively the largest
stockholder of Equus. Our stake is aligned with that of all Equus
stockholders. With the May 12, 2010 annual meeting of stockholders
only days away, the Company continues to avoid the real issue at
hand:
THE COMMITTEE BELIEVES
CORE CHANGE IS NEEDED ON THE
EQUUS BOARD AND HERE’S WHY:
- DISMAL PERFORMANCE: While
MCCA was the investment adviser to Equus and until we announced our
intention to launch this proxy contest, the stock price
of Equus declined 65%*. Kenneth Denos, a current Board member
and white card nominee, was President and CEO of MCCA. Denos also
nominated the four representatives of Versatile Systems to the
Board. Stockholders do not need more of the same failed
strategies.
- SEC INVESTIGATION: The
SEC is investigating trades in Equus stock by Versatile Systems,
which is represented by four white card nominees. We urge
stockholders to ask themselves why the Company did not disclose
this important information to them?
- FLAWED PROCESS: A
director and former Chairman of the Audit Committee resigned over
the “process” by which Versatile Systems’ representatives were
nominated.
- NEGLIGIBLE OWNERSHIP
STAKE: The white card slate personally owns only one half of
one percent of Equus common stock, and Richard Bergner, the
current Chairman of the Board, has never owned a single share of
Equus stock.
- SELECTIVE DISCLOSURES:
The Company continues to make selective disclosures, this time
regarding the track record of GOLD card nominee, Lance T.
Funston. Mr. Funston is a very successful entrepreneur
who brought Equus the Mid-Continent deal, realizing over $20
million in profits for Equus. Along with being a large stockholder
of Equus, RiskMetrics has recommended that stockholders vote FOR
Mr. Funston on the GOLD proxy card.
- RISKMETRICS RECOMMENDS NO
VOTE FOR WHITE CARD: In its May 4th report, RiskMetrics Group
noted that four white card
nominees are affiliated with a single stockholder, and recommended
that Equus stockholders vote on the GOLD proxy card and NOT vote the white card. Equus
stockholders are entitled to a diversified board with fresh
perspectives. Four nominees representing one stockholder is not
CORE change**.
ELECTING THE WHITE CARD NOMINEES,
WHICH INCLUDE A MAJORITY OF THE CURRENT DIRECTORS, IS NOT CORE CHANGE
THE COMMITTEE HAS NOMINATED HIGHLY
QUALIFIED AND EXPERIENCED DIRECTOR CANDIDATES WHOSE INTERESTS ARE
CLOSELY ALIGNED WITH THOSE OF ALL EQUUS STOCKHOLDERS
Vote The Committee’s GOLD Proxy Card Today
The Committee’s director nominees are widely respected,
well-connected community and industry leaders, and, if elected,
they would bring a desperately needed fresh perspective to Equus
and oversee the implementation of disciplined strategies designed
to enhance and sustain value for all Equus stockholders.
The Committee believes that a board that has elected six
Chairmen and three CEO's over a five year period needs to be
replaced by those who will bring stability and a plan to reverse
the course of Equus and put our company back on track to delivering
value for all Equus stockholders. The Committee’s nominees, if
elected, plan to:
- Immediately initiate a formal
search for and install a CEO – currently a vacant position – with
FUND MANAGEMENT EXPERIENCE;
- Return Equus to a principled
investment approach by targeting investments in profitable
companies with a history of earnings;
- Pursue secured mezzanine
opportunities for both current income and dividend yields;
- Reduce expenses;
- Establish a committee to
critically assess past investments; and
- Restore sound corporate
governance practices to the boardroom.
The Committee and its nominees collectively own 11.4% of Equus
stock, making us the Company’s largest stockholder. Our interests
are closely aligned with those of ALL Equus stockholders. The
Committee believes stockholders deserve a Board with integrity and
has put forth nine highly qualified, principled nominees.
VOTE NOW FOR DESPERATELY NEEDED
CORE CHANGE AT EQUUS
VOTE FOR THE COMMITTEE’S
NOMINEES ON THE GOLD PROXY
CARD TODAY
We urge you to discard any white proxy cards you receive from
the Company and to vote the GOLD proxy card today. You can vote
by telephone or internet by following the instructions on the
GOLD proxy
materials.
If you have any questions, or need assistance voting your
GOLD proxy card,
please contact MacKenzie Partners, Inc., which is assisting us in
this solicitation, at (800) 322-2885 (toll-free) or (212) 929-5500
(call collect) or by email at
enhanceequus@mackenziepartners.com.
We encourage you to read our proxy statement and related
materials, which are available at no cost at
www.ourmaterials.com/enhanceequus.
Sincerely, THE COMMITTEE TO ENHANCE EQUUS
* June 1, 2005 through March 26,
2010. Moore, Clayton Capital Advisors, Inc. (MCCA) was investment
adviser to Equus from June 2005 until June 2009. The last trading
day before members of the Committee announced their intention to
launch a proxy contest was March 26, 2010.
** Permission to refer to the
report was neither sought nor obtained.
If you have any questions,
require assistance in voting your shares, or need
additional copies of The
Committee To Enhance Equus’ proxy materials, please call
MacKenzie Partners at the phone
numbers listed below.
MacKenzie Partners,
Inc.
105 Madison Avenue New York, NY 10016
enhanceequus@mackenziepartners.com
(212) 929-5500 (call collect) Or
TOLL-FREE (800)
322-2885
THE COMMITTEE TO ENHANCE EQUUS HAS FILED A DEFINITIVE PROXY
STATEMENT AND OTHER DOCUMENTS WITH THE SECURITIES AND EXCHANGE
COMMISSION. SECURITY HOLDERS ARE URGED TO READ CAREFULLY THE
DEFINITIVE PROXY STATEMENT BECAUSE IT CONTAINS IMPORTANT
INFORMATION REGARDING THE SOLICITATION OF PROXIES FOR USE AT EQUUS
TOTAL RETURN, INC.’S ANNUAL MEETING, INCLUDING INFORMATION RELATING
TO THE COMMITTEE, OUR NOMINEES AND THE PARTICIPANTS IN THIS
SOLICITATION. THE DEFINITIVE PROXY STATEMENT AND A FORM OF PROXY
ARE AVAILABLE TO EQUUS STOCKHOLDERS FROM THE PARTICIPANTS AT NO
CHARGE AT WWW.OURMATERIALS.COM/ENHANCEEQUUS AND ARE ALSO AVAILABLE
AT NO CHARGE AT THE SECURITIES AND EXCHANGE COMMISSION’S WEBSITE AT
WWW.SEC.GOV. THE DEFINITIVE PROXY STATEMENT AND A FORM OF PROXY
WERE DISSEMINATED TO SECURITY HOLDERS ON OR ABOUT APRIL 15,
2010.
This press release includes forward-looking statements. Except
for the historical information contained herein, the matters
discussed in this press release are forward-looking statements that
involve certain risks and uncertainties such as the Committee’s
plans and expectations regarding Board initiatives. These risks and
uncertainties include, among other things, market and economic
conditions. If any of these risks or uncertainties materializes, or
should underlying assumptions prove incorrect, actual results or
outcomes may vary materially from those expected. The Committee
disclaims any intention or obligation to update publicly or reverse
such statements, whether as a result of new information, future
events or otherwise.
Equus Total Return (NYSE:EQS)
Historical Stock Chart
From Jun 2024 to Jul 2024
Equus Total Return (NYSE:EQS)
Historical Stock Chart
From Jul 2023 to Jul 2024