Activist investor notes inaction by StealthGas Inc. after initial letter, demands change
Mequon, WI, May 30, 2018 // Activist investor Global Value Investment Corp. (GVIC) has sent a second open letter to the StealthGas Inc. (NasdaqGS: GASS) Board of Directors pressing for reforms in light of the persistent underperformance of the company’s common stock.
Read: Open Letter to the Board of Directors – Reiterating Need for Change
Presentation: Investor’s Case for Change
GVIC notes the lack of any substantive change following its January 11, 2018 letter to the Board of Directors despite subsequent written exchanges and an in-person meeting with Chairman Michael Jolliffe.
GVIC President and CEO, Mr. Jeffrey Geygan, believes shareholder discontent is growing. “After our January 11 letter, numerous shareholders expressed support for our proposals.” Geygan referenced StealthGas Inc.’s recent earnings report, saying “disappointing first quarter operating and financial results indicate the company remains disinterested in shareholder value creation.”
Reiterating its initial proposals that the Board of Directors immediately initiate a cash dividend, hire a permanent, non-affiliated CFO, retain an independent investor relations firm and establish clearly measurable performance metrics to hold the current entrenched management team accountable for the company’s poor results, GVIC’s current letter also elaborates on management’s persistent failure to capitalize on the company’s approximately $1 billion in assets.
Geygan added that GVIC stands ready to take whatever actions it deems necessary to ensure the interests of shareholders are served, up to and including a proxy contest to replace current directors.
About Global Value Investment Corp.
Global Value Investment Corp. is a value-oriented investment research and advisory firm focused on investing in the equity and debt of publicly traded companies around the world. The firm identifies under-valued investments and concentrates on closing the valuation gap.
GVIC was founded in 2007 in Mequon, WI. The firm has additional offices in Boston, MA, Charleston, SC and Hyderabad, India.
About StealthGas Inc.
StealthGas Inc. is a ship-owning company primarily serving the liquefied petroleum gas (LPG) sector of the international shipping industry. The company is one of the largest owners of pressurized LPG carriers in the 3,000 – 8,000 cbm costal carrier segment. The Company’s fleet includes 48 LPG carriers, three M.R. product tankers and one Aframax oil tanker. The company has been publicly listed on the NASDAQ stock exchange since 2005, and is headquartered in Kifisia, Greece.
For Further Information Contact:
Ms. Stacy Wilke
Global Value Investment Corp.