"Shareholders have spoken, and it is clear that they are unhappy with the direction Rimage is headed." – Richard S. Rofé, Managing Director, Arcadia Capital Advisors, LLC
NEW YORK, July 20, 2011 (GLOBE NEWSWIRE) -- Arcadia Capital Advisors, LLC ("Arcadia"), through its Managing Director, Richard S. Rofé ("Rofé"), has sent an open letter to Rimage Corporation ("Rimage" or the "Company") (Nasdaq:RIMG) and its Board of Directors (the "Board"). On June 22, 2011, Arcadia issued an open letter to shareholders outlining the dangers it believed that the Company would encounter in pursuit of a virtual publishing solution, and advocated for a return of cash to shareholders. After the June letter was released, Arcadia stated that it was contacted by a significant number of shareholders who indicated they have similar views and concerns as Arcadia.
"In the current letter, we ask that the Board immediately issue a special dividend funded with $85M or more in cash from the Rimage balance sheet, which is approximately $9.00 cash per share," stated Rofé. "We would rather have that cash in our pocket today, than face the risk that Management will burn through it attempting to execute on an over-valued acquisition target that is also far afield from the Company's core business."
"A special dividend makes sense because it will immediately alleviate the discount that the market has assigned to a potentially dilutive acquisition," Rofé explained. "We believe a special dividend will also be a good sign that that the Board is in fact sensitive to the concerns and demands of shareholders."
"Since our original letter, a significant number of shareholders have reached out to us to express their displeasure with Rimage's current acquisition strategy and have similar views as Arcadia regarding a return of value to shareholders in some form," Rofé continued. "Seeking to convene a special meeting may be the only option left to shareholders to ensure our voice is heard. However, we would prefer to work constructively with the Company, instead of having to travel down that path."
"Again, we ask the Board to fulfill its fiduciary duties and to abide by the mandate set by Rimage's corporate governance guidelines, and immediately issue a large special cash dividend," concluded Rofé. "We look forward to working with Rimage's management and its Board, but we are prepared to defend shareholders' interests if we meet resistance. We are emboldened by the fact that other shareholders are similarly displeased with Rimage's current direction, and we are committed to protecting our investment and shareholder value."
Click the attached link for the letter:
https://irm.ipreo.com/OpenFileLink.aspx?ID1=73574e220dbd4fddbf76131ca9beb820&ID2=79744391
About Arcadia Capital Advisors, LLC
Arcadia Capital Advisors, LLC is a private investment firm based in New York that employs a value-oriented investment philosophy in the management of long/short hedge funds focused on small and micro-cap companies. The firm is led by Richard Rofé and is sponsored by M.D. Sass-Macquarie Financial Strategies.