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1/n $CLCT silenced activist investor Alta Fox while they were in the process of selling the company for less than Alta Fox thought it was worth. On 28 September, in response to Alta Fox’s activist campaign, CLCT entered into a settlement agreement with Alta Fox...
2/n As per the tender offer documents, AT THAT TIME the Board was actively discussing a sale of the company at a valuation significantly less than Alta Fox’s valuation ($100 in 3 years – note valuation was before the boom in card collecting would have been fully appreciated)...
3/n So what were some of the terms of the settlement agreement with Alta Fox? Well, they basically gagged him...
4/n Alta Fox cannot solicit votes against the tender offer:
5/n Alta Fox cannot make any proposals in relation to the tender offer or seek out a better offer:
6/n Alta Fox cannot speak out against the tender offer:
7/n Alta Fox fought for shareholders. Now we have to take up the fight for ourselves. Disc: I am long CLCT. I have not spoken with Alta Fox Capital about the tender offer.
8/n on further reading, clause 14(g)(iv) does give Alta Fox the right to comment on the tender offer, but not sure how restricted this right to comment is by the other provisions.
