- Highlights That ORM’s Board Nominee, Gary C. Wallace, Received Support of Less Than 50% of Outstanding Shares
- Questions Why Holders of Approximately 67% Of Outstanding Shares Failed to Support Gary Wallace
- Freestone Believes that Liquidation of ORM is Best Way to Maximize Value for Stockholders
SEATTLE, June 22, 2017 /PRNewswire/ — Freestone Capital Management, LLC, together with its affiliates (“Freestone”), a long-term stockholder and the largest stockholder of Owens Realty Mortgage, Inc. (“ORM” or the “Company”) (NYSE MKT: ORM) today commented on the results of the Company’s 2017 Annual Meeting of Stockholders (the “Annual Meeting”), highlighting the fact that holders of only 33% of the Company’s outstanding shares supported the Company’s Board nominee, Gary C. Wallace. Freestone believes that the 67% of stockholders that did not vote for Gary Wallace are registering their displeasure with the continuation of the failed business model that serves to enrich management at the expense of stockholders. Freestone calls on the Board of Directors to abandon that flawed strategy and finally act upon their fiduciary duty to stockholders and liquidate the Company to maximize value for stockholders.
Gary Furukawa, Senior Partner of Freestone, stated, “We are not surprised at the underwhelming lack of stockholder support for Gary Wallace, with holders of approximately 18% of outstanding shares withholding their votes for his election, and holders of approximately 50% of outstanding shares choosing to not participate at the Annual Meeting, we believe out of disappointment with management and its continued failures. Freestone believes the Company’s flawed business model combined with continued excessive fees paid to management contributed to stockholders failing to support Mr. Wallace. We believe the Company’s last minute announcement of a stock buyback and an increase in the dividend are too-little too-late. In Freestone’s opinion, the best way to maximize value for all stockholders is to liquidate the Company so that long term suffering stockholders can finally realize the full value of their investment.”
Mr. Furukawa continued, “Freestone has been a long-term stockholder and one of the Company’s largest stockholders for 4 years, with significantly greater share ownership than management. Freestone is committed to maximizing value for all stockholders, and will continue to work for the benefit of all stockholders. We encourage stockholders who share our concerns to contact us.”
Freestone Capital Management, LLC is a $3.7 billion wealth advisor to select high net worth families and institutions with offices in Seattle, Oregon and California.
Gary I. Furukawa,
This news release is a re-post from PR Newswire.