The Wynnefield Group, the largest stockholder in Crown Crafts Inc. (NASDAQ: CRWS), today announced that preliminary voting results provided by the independent inspectors of election indicate that its director-nominees Melvin L. Keating and Jon C. Biro won election to the Crown Crafts Board of Directors at the Company’s Annual Meeting of Stockholders on August 10.
Keating and Biro said, “We’d like to thank Crown Crafts stockholders for their support and we look forward to serving them on the board. We are eager to roll up our sleeves and get to work in implementing the strategic review and governance reforms presented during the campaign. We remain absolutely focused on achieving our goal: creating value for all of the Company’s stockholders. And we will work constructively with our fellow directors to achieve that goal.”
In a statement, the Wynnefield Group said, “As a long-time stockholder who sees great unrecognized value in Crown Crafts, this is a campaign we undertook only reluctantly as a last resort. The message of this stockholder vote is clear: the status quo at Crown Crafts is unacceptable. While these are only two seats on a seven-member board, we believe that they provide essential impetus to moving the Company on the path to growing value for all stockholders.”
Election inspectors IVS Associates have presented the preliminary voting results and are in the process of completing the final tallies for certification. Four directors’ seats were contested in the election. According to the preliminary results, Wynnefield nominees Keating and Biro won the support of stockholders representing a substantial majority, about 56.1%, of shares voted. This resulted in a 1.15 million share margin of victory. In addition to Wynnefield’s nominees, directors E. Randall Chestnut and Sidney Kirschner were re-elected to the board.
Wynnefield nominees also received support from leading independent proxy voting and corporate governance advisory firms ISS Proxy Advisory Services and PROXY Governance, Inc.