Indaba Capital Management reaches agreement with ON24 (ONTF)
Key Summary: Indaba Capital urges board action to boost stock price and oversight. In Feb 2024, Letter Agreement secures Ronald P. Mitchell's board seat until 2025 AGM. Lynrock Lake in talks with company to enhance board compositionMarket Cap: $297 million | ON24, Inc. provides a cloud-based digital experience platform that enables businesses to convert customer engagement into revenue through interactive webinar, virtual event, and multimedia content experiences worldwide.
Indaba Capital Management
On December 20, 2022, Indaba Capital Management (8.8%) stated its belief that the Board needs to urgently take proactive measures to improve the company’s stock price, balance sheet and valuation, including by exploring bold capital allocation decisions, and intends to actively engage with the Board regarding ways to unlock shareholder value. Indaba Capital urges the Board to improve their oversight of management, engage directly with the stockholder base and demonstrate greater responsiveness to stockholder input. Source
On March 11, 2023, Indaba entered into a Cooperation Agreement with the company, appointing Ronald P. Mitchell as a Class I director until the 2025 AGM, Cynthia Paul as a Class II director until the 2023 AGM, and expanding its capital return program by $25 million, with a $50 million special cash dividend planned for Q2 2023 and the remaining $75 million to be returned within 12 months. Source
On February 22, 2024, Indaba Capital Management (10.2%) entered into a Letter Agreement with the company. Pursuant to the Letter Agreement, the company agreed to take all actions necessary to ensure that Ronald P. Mitchell will continue serving on the Board and as a member of the Nominating and Corporate Governance Committee of the Board until the 2025 AGM. Source
Lynrock Lake
On February 14, 2023, Lynrock Lake (15.3%) stated that in light of a press release issued by another shareholder on February 8, 2023, urging the company to add a shareholder representative to its board of directors, a director of the company invited Ms. Paul, Lynrock Lake, to have a discussion. The two parties discussed the composition of the board in an effort to enhance value for all shareholders. Source