Medallion Financial Corp. Exposes ZimCal’s Latest Campaign of Distortion and the Risks of Electing Its Unqualified Nominees
View original at globenewswire.comMedallion Financial Corp…
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Medallion's performance has been declining
60% confidenceThe Company would face a proxy contest 'every year' if it refused to buy out his debt on his terms
60% confidenceEric Kelly diverted customer revenue for personal benefit, misappropriated over 10% of customer prepayments, committed tax fraud by misrepresenting inventory risk, and terminated the CFO within two hours of a whistleblower complaint
60% confidenceOne former employee's four-year-old lawsuit against several defendants that has not proceeded beyond the pleadings stage is hardly material information
60% confidenceMedallion invested enormous time in dozens of meetings and correspondence with Hodges and always engaged in good faith; in late 2023 the Company offered to purchase his trust preferred securities at a fair price, which he rejected, demanding a premium
60% confidenceThe Board of Directors unanimously concluded that the ZimCal nominees are materially unqualified to serve on the board of a regulated consumer lending institution and their election would introduce regulatory risk and operational disruption
60% confidenceKelly allegedly asserted sole authority over the company's numbers regardless of accounting objections
60% confidenceMedallion's total shareholder return is the lowest in its peer group
60% confidenceQ1 results reflect strong loan growth requiring upfront CECL reserves (the 'growth penalty'); net income over five years totals $266 million, book value per share rose 53% since 2021, and net interest income grew at a 14.1% CAGR since 2021
60% confidenceThe Board has not held management accountable, citing director ages and tenure
60% confidenceMedallion has demonstrated consistent execution across the company's business lines
60% confidenceZimCal's goal across three consecutive proxy contests is a debt buyout at above-market price with misaligned incentives, and its campaign contains distortions about key issues
60% confidenceMedallion's total shareholder return since the transformation is 452% and has outperformed its peer group over 1-, 3-, and 5-year periods based on the true unaffected date; Hodges extends the measurement period to May 1, 2026 to manufacture a negative comparison
60% confidenceThe SBA matter was a technical issue related to SBA rules and not a financial default; it did not arise from criticism of credit performance or concerns about meeting financial obligations, and the Company has received positive SBA feedback on the cure
60% confidenceZimCal has engaged with Medallion over 50 times and been ignored or dismissed nearly every time
60% confidence