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Resonant proxy battle ?3

09:41 06-Oct-17


Park City Capital, has declared its intent to initiate a proxy battle for representation on, or control of, Resonant's board of directors in an SEC filing this morning.  I foreshadowed this a month and a half ago, and while I agree with some of Park City's points, particularly that management

has been all too eager to continually return to the capital markets to effectuate dilutive financings

I'm not at all sure that board changes will better advance shareholder interests, mainly because different shareholders have different interests.  Park City's is clearly to make a quick buck by either seeing the company bought out, or selling itself out in the associated publicity.  Which way things go should depend mainly on the response from the other two larger institutional shareholders, Longboard Capital and Lone Wolf Holdings, which 4.2M and 1.6M shares, respectively, as compared to Park City's 1M shares.  Collectively these institutions represent just under 50% of shares outstanding, so I think there is a decent chance of Park City advancing its agenda.  Whether or not that would be a good thing depends on the terms of any eventual deal versus one's individual investment horizon.