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Medallion Financial Corp. Urges Shareholders to Vote for Its Highly Qualified Director Nominees Ahead of 2026 Annual Meeting
Medallion Financial Corp. Urges Shareholders to Vote for Its Highly Qualified Director Nominees Ahead of 2026 Annual Meeting
About this update from Medallion Financial Corp.
[{"type":"text","content":"Company Highlights Record-Breaking Financial Performance as Successful Business Transformation has Created Historic Value for Shareholders Exceptional Board Leadership and Oversight has Assured Effective Execution of the Strategic Plan ZimCal’s Interest is Not Aligned with Common Shareholders’; ZimCal wants Medallion to Purchase its Trust Preferred Shares at a Premium to Market Value ZimCal’s Self-Serving, Disruptive Third Consecutive Campaign Proposes Unqualified Nominees Who May Derail Company’s Current Growth Trajectory NEW YORK, May 26, 2026 (GLOBE NEWSWIRE) -- Medallion Financial Corp. (NASDAQ: MFIN) (“Medallion” or the “Company”) today issued the following statement in connection with its 2026 Annual Meeting of Shareholders, urging shareholders to vote on the WHITE universal proxy card FOR the Company’s three highly qualified director nominees: John Everets, Cynthia A. Hallenbeck, and Alvin Murstein. Background Medallion’s historic run of shareholder value creation is under threat of disruption by a debt investor who vowed to wage proxy fights until the Company agrees to buy out his multimillion-dollar debt investment for a significant personal profit. This campaign marks the third proxy contest launched in three years by ZimCal, a firm led by Stephen Hodges who purports to specialize in distressed credit and debt, yet refuses to disclose the total assets he manages. In 2021, Mr. Hodges acquired $15 million of trust preferred securities (TruPS) issued by Medallion Financing Trust I in 2007, which are highly illiquid instruments of subordinated debt. At the time of his investment, the Company was undergoing a strategic transformation from primarily a taxi medallion lender to a specialty finance and consumer lending business. Despite the magnitude of the transformation, which has led to record profits and massive shareholder value creation, ZimCal has continued to pursue disruptive campaigns primarily because its holdings are predominantly debt not equity. Accordingly, ZimCal, in the absence of any common shares held over a significant time period, has not benefited from Medallion’s earnings accretion to the same extent as long-term shareholders. In late 2023, the Company had discussions with Mr. Hodges and offered to acquire his TruPS at a reasonable price beneficial to all shareholders. Insistent on receiving a premium for...