Camac Partners calls on TuSimple Holdings (TSP) to take overdue steps of monetizing remaining assets and returning capital to shareholders

Key Summary:  On May 30, 2024, Camac Partners urges TuSimple Holdings (TSP) to monetize remaining assets and return capital to shareholders promptly.On Jan 16, 2024, Mo Chen (19.1%), Executive Chairman, inked Cooperation Agreement with special committee for delisting Class A Common Stock. It amends Bylaws, requires 3+ independent directors, approval for Chen transactions. In 2-year Standstill Period, Chen supports independent directors, faces ownership limits, equitable Extraordinary Transactions.

Market Cap: $64 million | TuSimple Holdings Inc., an autonomous technology company, develops autonomous technology specifically designed for semi-trucks in the United States and Asia-Pacific region. 

Camac Fund

On May 30, 2024, Camac Fund (5.6%) issued a press release expressing concerns about the board's governance and indicated readiness to take actions in shareholders' best interests. They recommended immediate actions to enhance shareholder value, including (i) returning excess cash, estimated at over $2.5 per share as of May 2024, due to the stock trading significantly below this value, (ii) initiating a strategic review to explore options for either monetizing or winding down the company's ongoing business operations, given the significant investment and lack of clear commercial viability, and (iii) collaborating with third parties to assess opportunities for maximizing the value of TuSimple's substantial net operating losses.

Mo Chen

On January 16, 2024, Mo Chen (19.1%), the Executive Chairman of the Company's Board of Directors, entered into a Cooperation Agreement with the Company. This agreement, negotiated with a special committee of independent directors, pertains to the delisting and deregistration of the Company's Class A Common Stock. It mandates changes to the Company's Bylaws to ensure at least three independent directors and approval requirements for transactions involving Mr. Chen or Chen Affiliates. During the two-year Standstill Period, Mr. Chen commits to voting in favor of the Company's independent director nominees, while restrictions are placed on his ownership and participation in Extraordinary Transactions, ensuring equitable terms for Common Stock and other equity securities.