Blue Lion Capital Updates Shareholders on HomeStreet Bank

Rhea-AI Summary

HomeStreet Has Received At Least One Letter of Intent for the FNMA DUS License and MSRs

Positive

• Sale could generate more than $100 million in proceeds
• Maximizing the value of the FNMA DUS License will result in a significant revaluation of the stock

Negative

• Mark Mason aggressively pursuing a dilutive capital raise

HomeStreet Has Received At Least One Letter of Intent for the FNMA DUS License and MSRs

Believes a Sale Could Generate more than $100 million in Proceeds

The Gain Would Allow HomeStreet to Transform its Balance Sheet and Remove Viability Concerns 

Believes Maximizing the Value of the FNMA DUS License Will Result in a Significant Revaluation of the Stock

Encourages Shareholders and Interested Buyers to Contact Independent Directors of Board

DALLAS, Sept. 20, 2023 /PRNewswire/ -- Blue Lion Capital, a Dallas-based investment firm ("Blue Lion") that beneficially owns approximately 2.0% of the stock of HomeStreet, Inc. (Nasdaq: HMST) ("HomeStreet" or the "Company"), has issued a letter to shareholders to update them on a recent conversation with HomeStreet Bank and potential strategic alternatives being considered. 

During a recent conversation with Mark Mason and Jim Mitchell (Lead Independent Director), Mark detailed potential options that HMST could pursue to alleviate liquidity, capital and viability concerns.  Despite expressing doubt that HMST's FNMA DUS License and associated MSRs could ever receive an offer of $100M or more, they encouraged Chuck Griege to have interested parties contact the Company.  As of this writing, at least one interested buyer has sent a letter of intent to HMST.  Some information about the conversation with management and letter of intent is presented in the letter (see link for letter).

Blue Lion has also learned that Mark Mason is aggressively pursuing a capital raise as an alternative to selling the DUS license.  The raise would likely be so dilutive to current shareholders that it could trigger a change of control and possibly a change of control payment to Mark Mason exceeding $5 million.  How could such a risky and massively dilutive transaction be considered by the Board of Directors at this time?  Blue Lion believes the only responsible and achievable solution for HMST and its shareholders is to maximize the value of the DUS license.

Blue Lion is strongly encouraging all shareholders to contact HomeStreet's independent directors and express support for this strategy.  To do so, simply send an email to CorporateSecretary@HomeStreet.com and it will be distributed.

Important Information

Investor Contact:
Chuck Griege
Managing Partner
Blue Lion Capital
214-855-2430
chuck@bluelioncap.com

Copyright (c) 2023

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SOURCE Blue Lion Capital