Jan 07, 2025 activistcompany

Gate City Capital Management's Proposal for Board Declassification and Annual Elections at Intrepid Potash (IPI)

Key Summary: On January 14, 2025, Gonzalo Avendano of Clearway Capital Management LLC was appointed to the Board following a Cooperation Agreement with the company. On December 20, 2024, Gate City Capital Management (6.37%) urged the Board to address underperformance by adopting measures such as returning 75% of free cash flow to shareholders, cutting costs to 2019 levels, improving governance, aligning management incentives, and halting acquisitions until profitability stabilizes. On February 6, 2025, Gate City Capital Management (5.97%) proposed eliminating the classified board structure and moving to annual elections for all directors.

Market Cap: $337 million| Intrepid Potash, Inc., together with its subsidiaries, engages in the extraction and production of the potash in the United States and internationally.

Clearway Capital Management LLC

On January 14, 2025, Gonzalo Avendano, an investment advisor at Clearway Capital Management LLC, was appointed to the Board. The appointment follows a Cooperation Agreement between Clearway Capital and the company.

Gate City Capital Management

On December 20, 2024, Gate City Capital Management (6.37%) sent a letter to the Board outlining concerns about the company's historical underperformance due to issues like a lack of focus, non-core projects, high costs, inconsistent shareholder returns, and outdated governance. Gate City Capital proposes value-enhancing measures, including returning 75% of free cash flow to shareholders, repurchasing shares from a key shareholder, reducing costs to 2019 levels, adopting governance best practices, aligning management incentives with shareholder value, and avoiding acquisitions until profitability improves.
On February 6, 2025, Gate City Capital Management (5.97%) sent a letter to the Board proposing that it take all necessary steps to eliminate the classified structure and transition to annual elections for all directors

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