Activist Shareholder Remains Convinced That Miranda Technologies is Undervalued

Posted by Joe Zaller
Dec 24 2011

JEC Capital Partners (JEC), which along with JMB Capital Partners recently requisitioned a meeting of the shareholders of Miranda to replace four of the existing seven directors of Miranda Technologies with four new independent directors, said today that despite a statement from Miranda, it remains convinced that Miranda is significantly undervalued.

JEC Managing Partner Peter Heiland said in a press release that Miranda’s board has “failed to date to successfully push forward proper initiatives to maximize shareholder value.”

“We are one of Miranda’s largest shareholders and are well-informed, long-term investors,” said Heiland. “We were surprised and disappointed by the inaccurate and misleading characterization of our prior interaction with the Board made by the Chairman of the Company. On December 1 of this year, JEC requested the simple opportunity to exchange directly and informally with the directors on issues of value creation and necessary change at Miranda. We told Miranda that other large shareholders, like JEC, believe the share price will continue to languish well below its potential unless concrete steps to maximize value creation are taken, beginning with changes at the Board. Rather than accept JEC’s invitation for dialogue directly, the Board chose to communicate only through its third-party advisors.

“We provided Miranda’s Board with the names and biographies of three (3) independent director candidates and one (1) shareholder representative director candidate, all of whom are highly qualified and would make exceptional directors for Miranda. We encouraged the Company to either expand the current Board to accommodate at least two new directors or replace at least two existing directors with new, more qualified nominees.

“The Board’s refusal to discuss these issues directly reinforces JEC’s belief that Miranda’s current Board, which holds less than 0.3% of the outstanding shares of the Company, and its Chairman will continue to ignore the genuine interests of the concerned shareholders of Miranda and their desire for meaningful change.

“The current Board’s out of touch view that it has strong support among shareholders is shocking. We shared our opinions on the Company and our strategy for maximizing value with large shareholders prior to requisitioning a shareholder meeting. We believe that we have the support of several of the Company’s largest shareholders. Given the current Board’s stated confidence in shareholder support of its position, we urge Miranda to proceed with a shareholders’ meeting as quickly as possible and by no later than the end of January. Any delay in holding the meeting will signal that the Board knows that it does not have the shareholder support that it professes to have and is entrenching itself.”

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Related Content:

JEC Press Release: JCE Responds to Miranda Technologies

Activist Shareholders Seek To Replace Four Board Seats at Miranda Technologies

Miranda Responds to Activist Shareholders

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