Former Chairman and CEO of MMC Energy, Inc. (Nasdaq: MMCE) and Founding Shareholder Group Intend to Nominate a Slate of Directors for Election at MMC's May 2008 Annual Meeting
WILMINGTON, N.C., March 18 /PRNewswire/ -- Energy Holdings Limited LLC ("EHL"), a company comprised of MMC's founders, G. William Eason and Karl W. Miller, today announced that they intend to nominate a slate of directors for election at the May 2008 annual meeting of shareholders of MMC Energy, Inc. (NASDAQ:MMCE) ("MMC") and to solicit proxies from MMC's shareholders. The founding equity group intends to nominate highly qualified, experienced and execution-oriented individuals to replace the existing board of directors of MMC. EHL detailed their intentions in a letter dated March 7, 2008 that was delivered to MMC and is an exhibit to the Schedule 13-D filed on March 17, 2008. EHL and Karl W. Miller together own shares of MMC's common stock representing approximately 9.1% of MMC's outstanding shares. Miller is the founder and a former Chairman, CEO and director of MMC, as well as a major shareholder.
EHL requested in its March 7, 2008 letter that MMC's annual meeting be held in April 2008 due to the critical issues now facing the Company. "As major investors, EHL is focused on creating an enterprise that is energetic, dynamic and execution oriented," said Eason. "We will propose a board that is positioned to manage a micro-cap growth company which is dependent upon a highly driven and focused management team."
The proposed new slate of directors will provide a fresh perspective and new ideas for ways to grow revenues and profits through targeted acquisitions and drive shareholder value. "We believe the alternative slate will benefit shareholders," said Eason. The proposed nominees will form a highly-qualified, experienced and dedicated team that is committed to take the actions necessary to position MMC for long-term growth and profitability and increasing shareholder value. The nominees will be fully committed to acting in the best interests of all shareholders and the group has significant personal capital at risk by its holdings of MMC stock. If elected, the nominees would not accept directors' fees and Mr. Miller, who received a cash payment of $1,121,762 (gross) from MMC as a result of his separation from MMC, would plan to reinvest a substantial portion of that amount in the form of purchases of MMC stock. Miller is the largest individual non-institutional investor of MMC. "Since founding this Company, I have personally contributed cash for operations when MMC was a private firm, personally guaranteed debt and regularly purchased shares in the open market, and never sold even one share of stock. I continue to believe in MMC and am confident the true value of the Company is yet to be realized," said Miller. In response to the Company's announcement that it is relocating its current CEO to California, "We are pleased that the Board is listening to us, but without the simultaneous closure of the New York office, the inefficient use of MMC's cash and the direct and hidden costs of separating management only exacerbates the risk to shareholders," said Eason. Proceeds from the June 2007 IPO were specifically earmarked for the Chula Vista and Escondido upgrades. Given the deteriorating credit market conditions, it is paramount that MMC preserve its cash to support and fund the projects. Structuring a non-dilutive debt instrument or an additional acquisition without consideration for the current market conditions poses a significant risk to shareholders. "We are concerned about the Company's cash burn rate for general and administrative purposes," said Eason. This is an exciting time to be in the energy business and we are confident our plan is best for MMC," Eason added. "It is time to get back to work." IMPORTANT INFORMATION EHL and Messrs. Eason and Miller intend to file with the Securities and Exchange Commission and mail to shareholders a proxy statement and proxy card to be used to solicit proxies in connection with MMC's May 2008 annual meeting. Shareholders are advised to read carefully the proxy statement and other information related to the solicitation when they become available because they will contain important information. When completed, a definitive proxy statement and a form of proxy will be mailed to MMC's shareholders and will be available, along with other relevant documents, at no charge, at the SEC's website at http://www.sec.gov/. Information relating to the participants in such proxy solicitation will be contained in the proxy statement to be filed by EHL and Messrs. Eason and Miller. Investor/Media Contacts: G. William Eason
CONTACT: Investor, Media: G. William Eason of Energy Holdings Limited
2008-03-18 16:44:16 0315611 PRNEWSWIRE
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