Zuma Capital Management reaches agreement with Presidio Property Trust (SQFT)
Key Summary: On December 19, 2023, Zuma Capital Management nominated five candidates for the company's Board at the 2024 AGM. On March 13, 2024, they reiterated this, highlighting the need for new Board members to boost accountability, shareholder value, and company performance. On April 14, 2024, Zuma Capital Management retracted three nominations and proposed Brent Morrison and Elena Piliptchak as new nominees. On May 9, 2024, Zuma Capital Management entered into a cooperation agreement with the company.Market Cap: $12 million | Presidio is an internally managed, diversified REIT with holdings in model home properties which are triple-net leased to homebuilders, office, industrial, and retail properties.
On December 19, 2023, Zuma Capital Management delivered a letter to the company nominating a slate of five candidates for election to the Board at the 2024 AGM. Source
On March 13, 2024, Zuma Capital Management (6.6%) issued a press release and open letter to the stockholders, nominating five independent candidates for election to the Board at the 2024 Annual Meeting. They argue that refreshing the Board is necessary to restore accountability, enhance shareholder value, and facilitate a turnaround at the company. They also highlighted that the market undervalues the company's assets, attributing this to potential conflicts of interest between the company and its CEO and Chairman of the Board, Jack Heilbron's external business interests. Moreover, they criticized the Board's recent approval of long-term employment contracts for executives, seeing it as a reactive move to shareholder feedback.
On April 14, 2024, Zuma Capital Management (1.9%) accused the Board of using manipulative tactics to maintain control by invalidating their director nominations and criticized the Board's restructuring before the Annual Meeting. Zuma withdrew nominations for three candidates and announced intentions to nominate Brent Morrison and Elena Piliptchak instead. Source
On May 9, 2024, Zuma Capital Management entered into a cooperation agreement with the company and pursuant to it, the company appointed Elena Piliptchak as a Class III director to the Board.