{"id":8809,"date":"2023-06-14T11:06:37","date_gmt":"2023-06-14T16:06:37","guid":{"rendered":"https:\/\/1reason.com\/re\/institutional-shareholder-services-iss-recommends-a-vote-on-the-white-proxy-card-to-elect-both-star-equity-fund-director-nominees-at-firsthand-technology-value-fund\/8809\/"},"modified":"2023-06-15T06:06:37","modified_gmt":"2023-06-15T11:06:37","slug":"institutional-shareholder-services-iss-recommends-a-vote-on-the-white-proxy-card-to-elect-both-star-equity-fund-director-nominees-at-firsthand-technology-value-fund","status":"publish","type":"post","link":"https:\/\/1reason.com\/re\/institutional-shareholder-services-iss-recommends-a-vote-on-the-white-proxy-card-to-elect-both-star-equity-fund-director-nominees-at-firsthand-technology-value-fund\/8809\/","title":{"rendered":"Institutional Shareholder Services (ISS) Recommends a Vote on the White Proxy Card to Elect Both Star Equity Fund Director Nominees at Firsthand Technology Value Fund"},"content":{"rendered":"
, May 17, 2023 (GLOBE NEWSWIRE) — Star Equity Fund, LP (\u201cStar Equity Fund\u201d or \u201cwe\u201d) is an investment fund focused on unlocking shareholder value and improving corporate governance at its portfolio companies. Star Equity Fund owns 6.2% of the common stock of Firsthand Technology Value Fund, Inc. (Nasdaq GM: SVVC) (\u201cFirsthand\u201d or \u201cCompany\u201d) and announced today that Institutional Shareholder Services (\u201cISS\u201d), a leading independent proxy voting advisory firm, has recommended that Firsthand\u2019s shareholders vote on Star Equity Fund\u2019s WHITE<\/u><\/strong> proxy card to elect both its nominees \u2013 Robert Pearse and Hannah Bible \u2013 to the Company\u2019s board of directors (the \u201cBoard\u201d) at its upcoming 2023 annual meeting of shareholders (the \u201cAnnual Meeting\u201d). ISS recommended that Firsthand\u2019s stockholders \u201cDO NOT VOTE\u201d on the Company\u2019s blue proxy card. SVVC\u2019s Annual Meeting will be held in a virtual format on May 26, 2023, at 5:00 p.m. ET \/ 2:00 p.m. PT. <\/p>\n

Jeff Eberwein, Portfolio Manager of Star Equity Fund, remarked, \u201cWe are gratified by the overwhelming endorsement from the proxy advisor firm ISS in our election campaign at Firsthand Value Technology Fund. Our nominees have the right skillsets, determination, and commitment to drive meaningful change at the Company with the goal of unlocking value for all shareholders.\u201d<\/p>\n

In reaching its conclusion, ISS conducted a thorough analysis of Star Equity Fund\u2019s candidates and case for change at Firsthand. In its report, ISS focused on the Company\u2019s poor shareholder returns, its significant expense ratio in comparison to its returns, and its deeply flawed corporate governance profile. ISS concluded that shareholders should vote on the <\/strong>WHITE<\/u><\/strong> proxy card<\/strong> saying:<\/p>\n

\u201cThere are grave concerns with corporate governance that need to be addressed, and it is clear that a more independent presence will be necessary to hold the company’s external manager to account. Thus, support for dissident nominees Bible and Pearse is warranted.\u201d<\/em><\/strong><\/p>\n

Additional Excerpts from ISS\u2019 Analysis & Recommendation<\/u><\/p>\n

On the Company\u2019s stock price performance compared to NAV<\/em><\/strong><\/p>\n

\u201cThe company’s discount to NAV has been greater than 40 percent since mid-2016, and as of March 31, 2023, the company’s share price traded at a 74.7 percent discount to NAV. The significance of the discount’s magnitude is diminished by the fact that the company’s holdings are mainly not marketable securities and thus any valuation of them requires a high degree of subjectivity. Likewise, in the dissident’s opinion, the company’s NAV is likely inflated. Nonetheless, while the precise degree of the NAV discount is difficult to pinpoint, the large and persistent discount of the company’s trading price to NAV is<\/strong> undeniably concerning for shareholders<\/strong>.\u201d<\/p>\n

On the Company\u2019s poor performance and external management fees<\/em><\/strong><\/p>\n

\u201cWhile the company’s NAV is somewhat subjective, it is difficult to argue that the company’s discount to NAV of over 40 percent since 2016 represents anything but a clear indictment of the company’s board and external advisor<\/strong>. Even though shareholder returns have been poor, shareholders have paid an increasing proportion of the market price of their holdings to the external manager to oversee the company’s investments. In 2022, this proportion exceeded 15 percent. The external manager is run by the company’s CEO\/chair Landis, one of the targets of the dissident’s campaign. Given the company’s performance and governance, it is reasonable that shareholders should seek to hold him accountable<\/strong>.\u201d<\/p>\n

On the Company\u2019s indifference to shareholder concerns<\/em><\/strong><\/p>\n

\u201cAt each of the last three director elections, at least one of the incumbent nominees has failed to obtain more votes in favor than withhold votes. Throughout this period of time, the company has made no public acknowledgment of these persistent displays of shareholder dissatisfaction. The board has not only ignored shareholders, but it has actively sought to undermine their rights<\/u><\/strong>, which has been evidenced in the adoption of a worst-of-all-worlds vote standard for director elections and in opting into coverage under the MCSAA.\u201d<\/p>\n

IMPORTANT VOTING INFORMATION<\/u><\/strong><\/p>\n

It is imperative that any shareholder wanting to effect change on the Board vote \u201cFOR\u201d Star Equity Fund\u2019s director candidates on the <\/strong>WHITE<\/u><\/strong> proxy card<\/strong>. Voting \u201cAGAINST\u201d the incumbent director candidates on the Company\u2019s blue proxy card will not affect the outcome of the election as what ISS called the Company\u2019s “worst of all worlds” voting standards require at least 50% of the total shares outstanding to vote \u201cFOR\u201d a dissident director candidate in order to be elected. Please note you can vote again if you have already voted <\/strong>\u2013 the last vote that you submit will be the one that officially counts toward the election results. Vote the WHITE<\/u><\/strong> proxy card NOW<\/u><\/strong> to effect meaningful change at SVVC.<\/p>\n

If you have any questions, require assistance with voting your proxy card,<\/em><\/strong>
or need additional copies of proxy material, please contact InvestorCom LLC<\/em><\/strong><\/p>\n

InvestorCom LLC<\/em><\/strong><\/p>\n

19 Old Kings Highway S., Suite 130<\/strong>
Darien, CT 06820<\/strong><\/p>\n

proxy@investor-com.com<\/strong><\/a>
(203) 972-9300 or Toll-Free (877) 972-0090<\/u><\/strong><\/p>\n

ADDITIONAL INFORMATION AND WHERE TO FIND IT<\/strong><\/p>\n

Star Equity Fund, LP (\u201cStar Equity Fund\u201d), together with the other participants in its proxy solicitation (collectively, \u201cStar Equity\u201d), filed a definitive proxy statement and accompanying WHITE proxy card with the Securities and Exchange Commission (\u201cSEC\u201d) to be used to solicit votes for the election of its slate of highly qualified director nominees at the 2023 annual meeting of stockholders of Firsthand Technology Value Fund, Inc., a Maryland corporation (the \u201cCompany\u201d).<\/p>\n

STAR EQUITY STRONGLY ADVISES ALL STOCKHOLDERS OF THE COMPANY TO READ THE PROXY STATEMENT AND OTHER PROXY MATERIALS AS THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. SUCH PROXY MATERIALS WILL BE AVAILABLE AT NO CHARGE ON THE SEC’S WEB SITE AT HTTP:\/\/WWW.SEC.GOV. IN ADDITION, THE PARTICIPANTS IN THIS PROXY SOLICITATION WILL PROVIDE COPIES OF THE PROXY STATEMENT WITHOUT CHARGE, WHEN AVAILABLE, UPON REQUEST.<\/p>\n

About Star Equity Fund, LP <\/strong><\/p>\n

Star Equity Fund, LP is an investment fund affiliated with Star Equity Holdings, Inc. Star Equity Fund seeks to unlock shareholder value and improve corporate governance at its portfolio companies.<\/p>\n

About Star Equity Holdings, Inc. <\/strong><\/p>\n

Star Equity Holdings, Inc. is a diversified holding company with two divisions: Construction and Investments.<\/p>\n

For more information contact:<\/strong>
Star Equity Fund, LP<\/strong>
Jeffrey E. Eberwein
Portfolio Manager
203-489-9501
jeff.eberwein@starequity.com<\/a> <\/p>\n

The Equity Group
<\/strong>Lena Cati
Senior Vice President
212-836-9611
lcati@equityny.com<\/a><\/p>\n

<\/div>\n","protected":false},"excerpt":{"rendered":"

\n

ISS Concludes: \u201cAgainst this Backdrop of Poor Performance, High Management Fees, and Board Inaction, the Dissident Has Made a Successful Case for Change; As Such, Support for Both of the Dissident\u2019s Nominees is Warranted\u201d<\/p>\n

Star Equity Fund Urges All Shareholders to Vote the WHITE Proxy Card to Support the Election of its Nominees \u2013 Robert Pearse and Hannah Bible<\/p>\n

Reminder: Due to the “Worst of All Worlds” Voting Standard Put in Place by the Board, a Vote Against the Incumbents on Management\u2019s Blue Proxy Card is NOT ENOUGH \u2013 Shareholders Need to Vote \u201cFOR\u201d Star Equity Fund\u2019s Nominees on the WHITE Proxy Card to Effect Long Needed Change on the Board<\/p>\n

OLD GREENWICH, Conn.<\/p>\n<\/div>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":[],"categories":[11],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/1reason.com\/re\/wp-json\/wp\/v2\/posts\/8809"}],"collection":[{"href":"https:\/\/1reason.com\/re\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/1reason.com\/re\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/1reason.com\/re\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/1reason.com\/re\/wp-json\/wp\/v2\/comments?post=8809"}],"version-history":[{"count":1,"href":"https:\/\/1reason.com\/re\/wp-json\/wp\/v2\/posts\/8809\/revisions"}],"predecessor-version":[{"id":8826,"href":"https:\/\/1reason.com\/re\/wp-json\/wp\/v2\/posts\/8809\/revisions\/8826"}],"wp:attachment":[{"href":"https:\/\/1reason.com\/re\/wp-json\/wp\/v2\/media?parent=8809"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/1reason.com\/re\/wp-json\/wp\/v2\/categories?post=8809"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/1reason.com\/re\/wp-json\/wp\/v2\/tags?post=8809"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}