Quipt Home Medical Announces Cooperation Agreement With Kanen Wealth Management
Quipt Home Medical Corp. (NASDAQ: QIPT; TSX: QIPT), a U.S. based home medical equipment provider, has announced a cooperation agreement with Kanen Wealth Management. Under this agreement, Kanen has withdrawn its intent to solicit proxies for four director candidates at the 2025 annual general meeting.
The agreement grants Kanen Board access rights while maintaining at least 3.5% ownership of outstanding shares, including quarterly discussions with the Board Chairman or non-executive director. A new Board committee will be established to review Kanen's recommendations on corporate governance and operations.
The agreement includes a customary standstill and voting commitment from Kanen. DLA Piper, Vinson & Elkins L.L.P., and Goodmans LLP serve as legal advisors, with Longacre Square Partners as strategic advisor.
Quipt Home Medical Corp. (NASDAQ: QIPT; TSX: QIPT), un fornitore di attrezzature mediche domiciliari con sede negli Stati Uniti, ha annunciato un accordo di cooperazione con Kanen Wealth Management. In base a questo accordo, Kanen ha ritirato la sua intenzione di sollecitare deleghe per quattro candidati al consiglio di amministrazione durante l'assemblea generale annuale del 2025.
L'accordo concede a Kanen diritti di accesso al consiglio mantenendo almeno il 3,5% di proprietà delle azioni in circolazione, inclusi colloqui trimestrali con il Presidente del Consiglio o un direttore non esecutivo. Sarà istituito un nuovo comitato del Consiglio per esaminare le raccomandazioni di Kanen sulla governance aziendale e sulle operazioni.
L'accordo include un impegno di standstill e di voto da parte di Kanen. DLA Piper, Vinson & Elkins L.L.P. e Goodmans LLP fungono da consulenti legali, con Longacre Square Partners come consulente strategico.
Quipt Home Medical Corp. (NASDAQ: QIPT; TSX: QIPT), un proveedor de equipos médicos para el hogar con sede en EE. UU., ha anunciado un acuerdo de cooperación con Kanen Wealth Management. Según este acuerdo, Kanen ha retirado su intención de solicitar poderes para cuatro candidatos a director en la reunión general anual de 2025.
El acuerdo otorga a Kanen derechos de acceso al consejo mientras mantenga al menos el 3,5% de propiedad de las acciones en circulación, incluyendo discusiones trimestrales con el presidente del consejo o un director no ejecutivo. Se establecerá un nuevo comité del consejo para revisar las recomendaciones de Kanen sobre gobernanza corporativa y operaciones.
El acuerdo incluye un compromiso habitual de standstill y de votación por parte de Kanen. DLA Piper, Vinson & Elkins L.L.P. y Goodmans LLP actúan como asesores legales, con Longacre Square Partners como asesor estratégico.
Quipt Home Medical Corp. (NASDAQ: QIPT; TSX: QIPT), 미국에 본사를 둔 가정용 의료 장비 공급업체가 Kanen Wealth Management와 협력 계약을 발표했습니다. 이 계약에 따라 Kanen은 2025년 연례 총회에서 네 명의 이사 후보를 위한 위임장을 요청할 의사를 철회했습니다.
이 계약은 Kanen에게 이사회 접근 권한을 부여하며, 최소 3.5%의 발행 주식 소유를 유지하는 조건입니다. 이사회 의장 또는 비상임 이사와의 분기별 논의도 포함됩니다. Kanen의 기업 거버넌스 및 운영에 대한 권고를 검토하기 위해 새로운 이사회 위원회가 설립될 것입니다.
계약에는 Kanen의 일반적인 스탠드스틸 및 투표 약속이 포함되어 있습니다. DLA Piper, Vinson & Elkins L.L.P. 및 Goodmans LLP가 법률 자문을 제공하며, Longacre Square Partners가 전략 자문으로 활동합니다.
Quipt Home Medical Corp. (NASDAQ: QIPT; TSX: QIPT), un fournisseur d'équipements médicaux à domicile basé aux États-Unis, a annoncé un accord de coopération avec Kanen Wealth Management. En vertu de cet accord, Kanen a retiré son intention de solliciter des procurations pour quatre candidats au conseil d'administration lors de l'assemblée générale annuelle de 2025.
L'accord accorde à Kanen des droits d'accès au conseil tout en maintenant au moins 3,5 % de propriété des actions en circulation, y compris des discussions trimestrielles avec le président du conseil ou un directeur non exécutif. Un nouveau comité du conseil sera créé pour examiner les recommandations de Kanen sur la gouvernance d'entreprise et les opérations.
L'accord comprend un engagement habituel de non-concurrence et de vote de la part de Kanen. DLA Piper, Vinson & Elkins L.L.P. et Goodmans LLP agissent en tant que conseillers juridiques, avec Longacre Square Partners en tant que conseiller stratégique.
Quipt Home Medical Corp. (NASDAQ: QIPT; TSX: QIPT), ein in den USA ansässiger Anbieter von medizinischen Geräten für den Heimgebrauch, hat eine Kooperationsvereinbarung mit Kanen Wealth Management bekannt gegeben. Im Rahmen dieser Vereinbarung hat Kanen seine Absicht zurückgezogen, bei der Jahreshauptversammlung 2025 Stimmrechtsvollmachten für vier Direktorenkandidaten anzufordern.
Die Vereinbarung gewährt Kanen Zugangsrechte zum Vorstand, solange mindestens 3,5% der ausstehenden Aktien gehalten werden, einschließlich vierteljährlicher Gespräche mit dem Vorstandsvorsitzenden oder einem nicht-executiven Direktor. Ein neuer Ausschuss des Vorstands wird eingerichtet, um Kanens Empfehlungen zur Unternehmensführung und zu den Betriebsabläufen zu prüfen.
Die Vereinbarung umfasst ein übliches Standstill- und Abstimmungskommitment von Kanen. DLA Piper, Vinson & Elkins L.L.P. und Goodmans LLP fungieren als rechtliche Berater, während Longacre Square Partners als strategischer Berater tätig ist.
- Resolution of potential proxy contest avoiding shareholder conflict
- Enhanced corporate governance through new Board committee
- Structured engagement with major shareholder (Kanen)
- Increased influence of activist investor in company operations
- Additional administrative overhead from new committee formation
Insights
Quipt Home Medical's cooperation agreement with Kanen Wealth Management represents a significant resolution to potential board disruption that investors should note. The agreement effectively neutralizes what could have been a contentious proxy battle, with Kanen withdrawing its slate of four alternative director candidates in exchange for board access rights and the formation of a specialized committee.
This development has several key governance implications. First, it establishes a formal engagement mechanism with a significant shareholder (requiring 3.5% minimum ownership), suggesting Kanen maintains a substantial position. Second, the creation of a dedicated committee to review Kanen's recommendations indicates acknowledgment of legitimate concerns regarding operations and governance practices.
The standstill and voting provisions constrain Kanen's activism temporarily, providing management stability to execute existing strategies. However, the non-binding nature of the committee's recommendations preserves board authority while incorporating shareholder input - a balanced governance approach.
For investors, this represents a pragmatic resolution that maintains board continuity while potentially introducing enhanced oversight. The agreement signals management's willingness to engage with critical shareholders without ceding control, though the actual operational impact will depend on which recommendations are ultimately implemented.
Remains Committed to Executing Growth Plans and Enhancing Shareholder Value
CINCINNATI, March 04, 2025 (GLOBE NEWSWIRE) -- Quipt Home Medical Corp. (the “Company” or “Quipt”) (NASDAQ: QIPT; TSX: QIPT), a U.S. based home medical equipment provider, focused on end-to-end respiratory care, today announced that it has entered into a cooperation agreement (the “Agreement”) with David Kanen, Philotimo Fund, LP and Kanen Wealth Management, LLC (collectively with their affiliates, “Kanen”), under which Kanen has agreed to withdraw its notice of its intent to solicit proxies in support of four director candidates at the Company’s upcoming 2025 annual general meeting of shareholders in opposition to the director candidates recommended by the Company. As part of the Agreement, the Company’s Board of Directors (the “Board”) has granted Kanen certain Board access rights for as long as Kanen maintains aggregate beneficial ownership of at least
Under the Agreement, the Company agreed to establish a new committee of the Board to review and provide analysis and non-binding recommendations to the Board pertaining to Kanen’s previously communicated recommendations related to corporate governance and other areas related to the Company’s operations.
“We want to thank Kanen for their constructive discussions and valuable insights,” stated Mark Greenberg, Lead Independent Director of the Board. “We appreciate the perspectives of all shareholders and welcome ongoing engagement as management executes on our strategic growth plans to drive long-term growth.”
David Kanen, President and CEO of Kanen commented: “We appreciate the Company’s willingness to engage with us and its commitment to maximizing value for Quipt shareholders. The formation of this Committee is an important step, and we look forward to working constructively with the Company to help unlock long-term value.”
Pursuant to the Agreement, Kanen has also agreed to a customary standstill, a voting commitment and other provisions. The full text of the Agreement will be filed as an exhibit to a Current Report on Form 8-K with the U.S. Securities and Exchange Commission (the “SEC”) and with the Canadian securities regulators.
Advisors
DLA Piper serves as the Company’s legal advisors in Canada and the United States. In addition, Vinson & Elkins L.L.P. and Goodmans LLP assisted as legal advisors to the Company, along with Longacre Square Partners as strategic advisor.
ABOUT QUIPT HOME MEDICAL
The Company provides in-home monitoring and disease management services including end-to-end respiratory solutions for patients in the United States healthcare market. It seeks to continue to expand its offerings to include the management of several chronic disease states focusing on patients with heart or pulmonary disease, sleep disorders, reduced mobility, and other chronic health conditions. The primary business objective of the Company is to create shareholder value by offering a broader range of services to patients in need of in-home monitoring and chronic disease management. The Company’s organic growth strategy is to increase annual revenue per patient by offering multiple services to the same patient, consolidating the patient’s services, and making life easier for the patient.
For further information please visit our website at www.quipthomemedical.com, or contact:
Cole Stevens
VP of Corporate Development
Quipt Home Medical Corp.
859-300-6455
cole.stevens@myquipt.com
Gregory Crawford
Chief Executive Officer
Quipt Home Medical Corp.
859-300-6455
Forward-Looking Statements
Certain statements contained in this press release constitute “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 or “forward-looking information” as such term is defined in applicable Canadian securities legislation (collectively, “forward-looking statements”). The words “may”, “would”, “could”, “should”, “potential”, “will”, “seek”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect”, “outlook”, or the negatives thereof or variations of such words, and similar expressions as they relate to the Company, are intended to identify forward-looking information. All statements other than statements of historical fact, including those that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance are not historical facts and may be forward-looking statements and may involve estimates, assumptions and uncertainties that could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. Such statements reflect the Company’s current views and intentions with respect to future events, and current information available to the Company, and are subject to certain risks, uncertainties and assumptions. Many factors could cause the actual results, performance or achievements that may be expressed or implied by such forward-looking statements to vary from those described herein should one or more of these risks or uncertainties materialize. Examples of such risk factors include, without limitation, those risk factors discussed or referred to in the Company’s disclosure documents, including the Company’s most recent Annual Report on Form 10-K, filed with the SEC and available at www.sec.gov, and with the securities regulatory authorities in certain provinces of Canada and available at www.sedarplus.com. Should any factor affect the Company in an unexpected manner, or should assumptions underlying the forward-looking statement prove incorrect, the actual results or events may differ materially from the results or events predicted. Any such forward-looking statements are expressly qualified in their entirety by this cautionary statement. Moreover, the Company does not assume responsibility for the accuracy or completeness of such forward-looking statements. The forward-looking statements included in this press release is made as of the date of this press release and the Company undertakes no obligation to publicly update or revise any forward-looking statements, other than as required by applicable law.
Important Additional Information
On January 24, 2025, the Company filed a Management Information and Proxy Circular (as may be amended or supplemented from time to time, the “Circular”) and WHITE Proxy Card with the SEC and on the System for Electronic Document Analysis and Retrieval (“SEDAR+”) in connection with its solicitation of proxies in support of four director candidates to the Board at the 2025 annual general meeting of shareholders of the Company to be held on March 17, 2025 (including any adjournments, reschedulings, continuations or postponements thereof, the “Meeting”).
On January 25, 2025, the Company received a letter pursuant to Rule 14a-19(b) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), from Kanen purporting to provide notice of Kanen’s intent to solicit proxies in support of four director candidates in opposition to the Company’s four director candidates. As part of the Cooperation Agreement, Kanen has agreed to withdraw its notice of intent to solicit proxies in support of any opposition candidates.
SHAREHOLDERS OF THE COMPANY ARE STRONGLY ENCOURAGED TO READ THE CIRCULAR, ACCOMPANYING WHITE PROXY CARD AND ALL OTHER RELEVANT DOCUMENTS THAT MAY BE FILED WITH, OR FURNISHED TO, THE SEC AND SEDAR+ CAREFULLY AND IN THEIR ENTIRETY IF AND WHEN THEY BECOME AVAILABLE, AS THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE MEETING.
Participant Information
The Company, its directors (Gregory Crawford, Chairman of the Board and Chief Executive Officer, Mark Greenberg, Dr. Kevin A. Carter and Brian J. Wessel) and certain of its executive officers (Hardik Mehta, Chief Financial Officer) are “participants” (as defined in Section 14(a) of the Exchange Act) in the solicitation of proxies from the Company’s shareholders in connection with matters to be considered at the Meeting. Information about the compensation of our non-employee directors and our named executive officers is set forth in the section of the Circular titled “Executive Compensation,” which commences on page 15. Information regarding the participants’ holdings of the Company’s securities can be found in the section if the Circular titled “Voting Securities and Principal Holders,” which commences on page 3 and is available here.
FAQ
What are the key terms of Quipt Home Medical's (QIPT) cooperation agreement with Kanen Wealth Management?
How will the 2025 annual general meeting of QIPT shareholders be affected by this agreement?
What ownership threshold must Kanen maintain for Board access rights at QIPT?
What new governance structure is QIPT implementing as part of the Kanen agreement?
