Jun 03, 2025 activistcompany

Chain of Lakes reaches agreement with Lantronix (LTRX)

Key Summary: On June 2, 2025, Chain of Lakes Investment Fund said the shares are deeply undervalued, citing a 95% decline since the 2000 IPO, no dividends, and weak board performance. Believing the business is worth more to a strategic buyer, it estimates a $6/share sale value. With little confidence in the current board, the fund plans a proxy contest at the 2025 annual meeting to replace a majority of directors and pursue a sale. On June 30, 2025, the company entered into a cooperation agreement with Chain of Lakes Investment Fund

Market Cap: $83 million | Lantronix, Inc. provides solutions for video surveillance, traffic management, infotainment systems, robotics, edge computing, and remote environment management in the Americas, Europe, the Middle East, Africa, and the Asia Pacific Japan.

Chain of Lakes Investment Fund

On June 2, 2025, Chain of Lakes Investment Fund stated its belief that the shares are deeply undervalued and cited a more than 95% stock decline since the 2000 IPO, with no dividends and poor board performance. The fund argues that the business lacks scale and efficiency, making it more valuable to a strategic acquirer, and estimates a potential sale value of approximately $6 per share based on forecasted FY2026 sales and margins. Lacking confidence in the current board to pursue strategic alternatives, they plan to nominate a new board majority via a proxy contest at the 2025 annual meeting to push for a sale. They intend to engage other shareholders and may take further actions as needed. Source

On June 30, 2025, the company entered into a cooperation agreement with Chain of Lakes Investment Fund and pursuant to it, James (Jim) C. Auker will be appointed to the Lantronix Board of Directors

Orange River Partners

On June 6, 2023, Orange River Partners (5.3%) stated that the shares are undervalued and it plans to discuss CEO candidates, board composition, and shareholder value with the board. Source

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