ZimCal Asset Management, LLC and Its Affiliates Nominate Two Highly Qualified, Independent Candidates to the Board of Medallion Financial Corp.

Rhea-AI Summary

ZimCal Asset Management, and its affiliates nominate two highly qualified, independent candidates to the Board of Medallion Financial Corp. The nominees have extensive financial experience and aim to improve governance and management practices. ZimCal believes the current Board lacks independence and has negatively impacted stockholders. The Company's stock price has declined by 40% over the last decade, with heightened near-term risk factors due to subprime exposure and poor loss mitigation history.

Positive

• ZimCal nominates two experienced candidates with 40 years of financial expertise to Medallion Financial Corp.'s Board.
• The nominees aim to enhance governance, challenge the status quo, and create shareholder value.
• ZimCal believes the current Board lacks independence and has prioritized management over stockholders.
• Medallion Financial Corp.'s stock price has dropped by 40% in the past 10 years.
• The Company faces near-term risk factors due to subprime exposure, worsening charge-offs, and historical loss mitigation issues.

Negative

• Medallion Financial Corp. has a poor history of loss mitigation and faces material subprime exposure.
• The Company's stock price has declined significantly over the last decade, raising concerns about long-term profitability.
• ZimCal's campaign to 'Restore the Shine' highlights the need for improved governance, management, and business strategy.
• ZimCal's ongoing press releases and campaign website aim to keep shareholders informed about the nomination process.

• Medallion Financial Corp. stock price is down 40% over the last 10 years.
• ZimCal seeks changes in leadership and governance and believes the current Board lacks independence and has rewarded management at the expense of stockholders.
• ZimCal sees heightened near-term risk factors given Medallion’s material subprime exposure, worsening charge-offs and poor history of loss mitigation.
• ZimCal sees tremendous growth and long-term profit potential for the Company with the right governance, management and business strategy in place.
• ZimCal launches campaign website www.restoretheshine.com.

MINNEAPOLIS--(BUSINESS WIRE)-- ZimCal Asset Management, LLC, and its affiliates BIMIZCI Fund LLC, Warnke Investments LLC and Stephen Hodges (collectively “ZimCal”) one of the largest investors in Medallion Financial Corp. (the “Company” or “MFIN”) with over $15.5 million in debt and equity investment exposure, filed a preliminary proxy statement with the Securities and Exchange Commission (“SEC”) in connection with its nomination of two independent Board candidates for election to the Company’s Board of Directors (the “Board”) at the 2024 Annual Meeting of Stockholders.

ZimCal’s nominees have a combined 40 years of financial experience in areas including banking, consumer lending, securitization, credit analysis and capital markets. Their experience directly overlaps with, and will enhance, the Company’s core business. The nominees bring a fresh perspective, are unafraid to challenge the status quo and will work tirelessly to help create shareholder value.

ZimCal will issue ongoing press releases with updates and details on its plan to “Restore the Shine” to Medallion Financial Corp. All releases will also be at www.restoretheshine.com.

Visit https://restoretheshine.com/home#Nominees to learn about our nominees.

Visit www.restoretheshine.com to view important details and updates, and to sign-up.

About ZimCal Asset Management, LLC

ZimCal Asset Management is an alternative investment firm focused primarily on niche, illiquid and complex credit investment opportunities.

ZimCal Asset Management partners with both healthy and distressed borrowers or issuers and provides customized solutions that meet their unique needs and circumstances. Over the last 15 years, the founder of ZimCal Asset Management has developed a specialization investing in FDIC-insured institutions and has partnered with over 120 bank lenders through investments on both sides of the balance sheet.

ZimCal usually works in collaboration with bank leadership teams if required, but on very rare occasions, must insert itself more forcefully if it believes that leadership is underwhelming and threatens to undermine stakeholder investments. ZimCal prides itself on performing extensive, rigorous financial analysis and research to fully understand the risks of any investment.

Solicitation Information

This press release is not a solicitation of a proxy from any security holder of Medallion Financial Corp. Stockholders are urged to read the definitive proxy statement and WHITE proxy card when they become available, because they will contain important information about the ZimCal nominees and related matters. Shareholders may obtain a free copy of the definitive proxy statement and WHITE proxy card (when available) and other documents filed by ZimCal on the web site of the Securities and Exchange Commission (SEC) at www.sec.gov. Shareholders may also direct a request to ZimCal’s proxy solicitor, Saratoga, 520 8th Avenue, 14th Floor, New York, NY 10018 (shareholders can e-mail at info@saratogaproxy.com or call toll-free at (888) 368-0379).

Participants in Solicitation

The identity of the participants in the solicitation and a description of their direct or indirect interests, by security holdings or otherwise is contained in ZimCal’s preliminary proxy statement filed with the SEC on April 10, 2024.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240412354888/en/

nicole@nh-consult.com

Source: ZimCal Asset Management, LLC

FAQ

What changes does ZimCal seek in Medallion Financial Corp.?

ZimCal seeks improvements in leadership, governance, and management practices at Medallion Financial Corp.

Why does ZimCal believe the current Board lacks independence?

ZimCal believes the current Board of Medallion Financial Corp. has rewarded management at the expense of stockholders.

What are the near-term risk factors identified by ZimCal for Medallion Financial Corp.?

ZimCal highlights near-term risk factors such as material subprime exposure, worsening charge-offs, and poor loss mitigation history for Medallion Financial Corp.

What is the purpose of ZimCal's campaign website www.restoretheshine.com?

ZimCal's campaign website aims to provide updates and details on its plan to 'Restore the Shine' to Medallion Financial Corp.

Who are the nominees proposed by ZimCal for Medallion Financial Corp.'s Board?

ZimCal has nominated two highly qualified, independent candidates with extensive financial experience for Medallion Financial Corp.'s Board.