NEW YORK, April 3, 2012 (GLOBE NEWSWIRE) -- Moab Capital Partners, LLC ("Moab Capital ") today announced that it intends to vote for all four independent director nominees proposed by Octavian Advisors, LP ("Octavian") at the April 30 Annual Meeting of Shareholders (the "Annual Meeting") of EnerCare, Inc. ("EnerCare" or the "Company"). Moab Capital is the investment manager of Moab Partners, L.P. ("Moab Partners"), an investment firm that beneficially owns 6.5% of EnerCare's outstanding shares. Moab Capital has been a shareholder of EnerCare for nearly two years, and, based on publicly available information, we believe we are EnerCare's second largest shareholder today.
Moab Capital has followed with increasing discomfort the contentious public communications between Octavian and the Company. In numerous press releases over the past few months, James Pantelidis, EnerCare's Chairman of the Board, has made comments suggesting that Octavian's interests are not aligned with other shareholders of EnerCare. Moab Capital believes James Pantelidis and the Board of Directors (the "Board") have failed to present compelling evidence to support their claim. Furthermore, Moab Capital believes that recent actions taken by the Board are not in the best interests of all shareholders.
Specifically, the Board's decision to appoint two additional directors over the past two weeks directly ahead of the Annual Meeting seems a transparent display of board packing, and it demonstrates a lack of good corporate governance. This is, in Moab Capital's view, unacceptable behavior by a public company board of directors.
Additionally, Moab Capital objects to the Board's refusal to appoint an independent chairman for the upcoming Annual Meeting. Given the vocal nature of Mr. James Pantelidis' opposition to Octavian's legitimate desire for shareholder representation on the Board, it seems impossible for him to impartially conduct the upcoming Annual Meeting.
Moab Capital believes that the four nominees put forth by Octavian are well suited to serve on EnerCare's Board and will represent the interest of all of EnerCare's shareholders fairly.
About Moab Capital Partners, LLC
Moab Capital is an SEC-registered independent investment advisor founded in 2006 and is located in New York, NY.