In a recent 13D filing with the US Securities and Exchange Commission, Nathaniel August‘s Mangrove Partners disclosed a letter sent to the board of directors of RPX Corp (NASDAQ:RPXC). The investor expressed its disappointment with the company’s performance and Board’s lack of action to improve the 44% drop registered by the stock since its IPO. Therefore, Mangrove said it “had no choice but to nominate a slate of highly qualified candidates to replace the current class of directors, including the current CEO.” Mangrove also outlined several issues that the company is facing, including “poor capital allocation”, “excessive employee compensation”, “wasteful growth projects”, “stagnant core business growth”, “insular corporate governance”, and “cash hoarding”.
“When we recently met with management, we were hopeful that they would show some accountability for the resulting losses to shareholders. Instead, we were summarily invited to “sell the stock” if we didn’t like management’s decisions. In our view, that attitude betrays a fundamental misunderstanding that the Company somehow belongs to senior management and shows an overt disdain for the true owners of the Company, the shareholders. We believe that shareholders should decide whether they want the current regime to continue guiding the Company or whether it is time to elect a new set of fiduciaries. From our perspective, change is desperately needed, and we have therefore nominated three directors for election to the Company’s Board of Directors,” Mangrove added.
According to the filing, Mangrove owns some 2.58 million shares of RPX Corp (NASDAQ:RPXC), which represent 5% of the company’s outstanding stock. The filing added that Mangrove has nominated Nathaniel August, Gilbert Palter and Greg Share for election to the Board at the 2016 Annual Meeting of RPX Corp’s shareholders.
You can access the original SEC filing by clicking here.
Ownership Summary Table
| Name | Sole Voting Power | Shared Voting Power | Sole Dispositive Power | Shared Dispositive Power | Aggregate Amount Owned Power | Percent of Class |
|---|---|---|---|---|---|---|
| The Mangrove Partners Master Fund, Ltd | 0 | 2,580,986 | 0 | 2,580,986 | 2,580,986 | 5.0% |
| The Mangrove Partners Fund | 0 | 2,580,986 | 0 | 2,580,986 | 2,580,986 | 5.0% |
| The Mangrove Partners Fund (Cayman), Ltd | 0 | 2,580,986 | 0 | 2,580,986 | 2,580,986 | 5.0% |
| Mangrove Partners | 0 | 2,580,986 | 0 | 2,580,986 | 2,580,986 | 5.0% |
| Mangrove Capital | 0 | 2,580,986 | 0 | 2,580,986 | 2,580,986 | 5.0% |
| Nathaniel August | 0 | 2,580,986 | 0 | 2,580,986 | 2,580,986 | 5.0% |
Page 1 of 13 SEC Filing
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