Lionbridge and Robotti Issue Open Letter to CMCT's Board

Rhea-AI Summary

On March 15, 2021, Lionbridge Capital and Robotti & Company Advisors, owning approximately 5% of CIM Commercial Trust Corporation (CMCT), sent an open letter to the Board of Directors. They urged the Board to explore strategic alternatives to maximize stockholder value, including potentially selling CMCT's assets or conducting a market check for acquisition proposals. The Stockholder Group emphasized the need for independent directors to lead the strategic review, citing conflicts of interest. They also called for an early Annual Meeting to allow stockholders to elect a Board that prioritizes their interests.

Positive

• Stockholder Group believes current market conditions allow for maximizing value.
• Increased visibility of tenants returning to offices.
• Improving conditions in the investment-sales market.

Negative

• Calls for Board reconstitution indicate dissatisfaction with current governance.
• Failure to address Stockholder Group requests may harm governance perceptions.
• Potential delays in asset evaluation could hinder strategic decisions.

NEW YORK, March 15, 2021 /PRNewswire/ -- Lionbridge Capital, LP and Robotti & Company Advisors LLC (together with its affiliates, the "Stockholder Group" or "we") with an ownership interest of approximately 5% of CIM Commercial Trust Corporation ("CMCT" or the "Company") (NASDAQ: CMCT), today issued an open letter to the Company's Board of Directors (the "Board").

In the letter, the Stockholder Group urges the Board to explore strategic alternatives to maximize stockholder value, including, but not limited to an orderly sale of the Company's assets or another transaction that reflects CMCT's substantial underlying value.  Given increased visibility of tenants returning to offices, improving conditions in the investment-sales market, and recovering asset values, the Stockholder Group believes that now is an appropriate time to conduct a "market check" by soliciting acquisition proposals for the sale of the Company and individual properties.

For a strategic review to be credible and reach an objective conclusion, the Stockholder Group asserted that such a review must be led by fully independent directors, unaffiliated with CIM Group, given inherent conflicts of interest.  The Stockholder Group remains open to discussing the urgent need for Board reconstitution and a path forward to reach a resolution with the Board that is in the best interests of all CMCT stockholders. 

As the requests by the Stockholder Group to meet and work constructively with the Board, and Chairman Richard Ressler in particular, remain unaddressed, we feel it is imperative that CMCT hold its 2021 Annual Meeting of Stockholders as early as possible so that stockholders have the opportunity to elect the Board that they believe would best represent the stockholders' interests in identifying and pursuing value-maximizing opportunities for the Company.  The Stockholder Group firmly believes that any attempt to classify the current Board at this stage would be a material failure of governance and belie CIM Group's public commitment to high Environmental, Social, and Governance (ESG) standards.

The full text of the letter to the Board can be viewed at the following link: Letter to CMCT Board.

CONTACT:

Greg Morillo
Lionbridge Capital LP
Email: greg@lionbridgecap.com
Tel: (212) 300-8003

John Moran
Robotti & Company Advisors LLC
Email: moran@robotti.com
Tel: (646) 442-6702

Bob Marese
MacKenzie Partners, Inc.
Email: bmarese@mackenziepartners.com
Tel: (212) 929-5500

 

View original content:http://www.prnewswire.com/news-releases/lionbridge-and-robotti-issue-open-letter-to-cmcts-board-301247692.html

SOURCE Lionbridge Capital, LP

FAQ

What did Lionbridge Capital and Robotti & Company Advisors suggest for CMCT?

They urged the Board to explore strategic alternatives, including the sale of assets.

What percentage of CMCT does the Stockholder Group own?

The Stockholder Group owns approximately 5% of CIM Commercial Trust Corporation.

Why do the Stockholder Group want independent directors to lead the review?

They believe independent directors would avoid inherent conflicts of interest.

What are the improving market conditions mentioned by the Stockholder Group?

They noted increased tenant activity and a recovering investment-sales market.

What is the Stockholder Group's concern regarding the current Board?

They feel the Board should be reconstituted as current governance may not serve stockholder interests.