Prescott expressed its disappointment with the Board of Nature's Sunshine Products (NATR)

Key Summary: Nature's Sunshine Products is a health and wellness company selling nutritional products. Prescott Capital (7.7% stake) expressed disappointment over the Board rejecting its proposed candidate after its representative resigned in October 2020. Prescott has a history of Board involvement but is now reviewing its options.

Market Cap: $218mm | Nature's Sunshine Products, Inc. (NSP), together with its subsidiaries, is a natural health and wellness company. The company is engaged in the manufacturing and direct selling of nutritional and personal care products.

Wynnefield Partners

On June 8, 2017, the company appointed Mr. Robert D. Straus, an employee of Wynnefield Partners (11.6%), to its Board of Directors. Source

Red Mountain Capital Partners

In April 2011, Red Mountain Capital Partners secured one board seat through mutual agreement. Source

Prescott Capital

• In February 2009, Prescott Master Fund demanded that the company hold a Special Meeting of shareholders, and in April 2009, it commenced legal action to order an Annual Meeting for the purpose of electing its candidates to the Board.
• In May 2009, Prescott entered into a settlement agreement with the company, and the company agreed to appoint one representative of Prescott to the Board. In addition, Prescott agreed to withdraw its demand to hold a shareholder meeting and dismissed the legal action against the company.
• On Aug 28, 2014, Prescott filed an amended 13D, reduced its stake from 12% to 9.8%, and stated that on August 25, 2014, it had entered into a letter agreement with the company. Pursuant to the agreement, it agreed not to disclose any proprietary information available to it. Prescott's representative still serves on the Board.
• As of September 2016, Prescott held 10%, and its representative still served on the Board.
• On June 8, 2020, Prescott reduced its stake to 7.7%.
• On October 21, 2020, Prescott (7.7%) stated that the Letter Agreement dated August 25, 2014, automatically terminated in accordance with Section 18 thereof upon the resignation of Jeffrey D. Watkins, Prescott's representative, from the Board, effective October 16, 2020. In connection with the resignation, Prescott held discussions with certain members of the Board regarding a proposed replacement for its representative on the Board. Prescott proposed an individual, but he was rejected by the Board. Prescott was greatly disappointed that the company saw no value in accepting its thoughts and advice related to the company’s future Board makeup and was reviewing various paths forward as a result of this action taken by the company. Source