Daktronics comments on presentation, statements from Alta Fox

Daktronics (DAKT) issued the following statement regarding the recent press release and public comments from Alta Fox Capital Management: “In May 2023, after a competitive process with several potential financing providers, we sold $25 million of convertible debt to Alta Fox… In its most recent proposal, Alta Fox demanded that the Company retire the convertible debt at a price more than three times its face value and nearly 50% above its fair value. On behalf of our shareholders and following consultation with its investment bankers, the Board rejected Alta Fox’s proposal as too costly to common shareholders, and it stands by that decision. Alta Fox then tried to intimidate the Board by threatening to initiate specious litigation on three separate matters, call a special meeting of shareholders, and nominate candidates to replace directors at the Company’s 2025 annual meeting of shareholders if the Board did not accept Alta Fox’s buyout terms on the convertible note. Recognizing that those threats would not convince the Board to repurchase Alta Fox’s debt at an unreasonable price, Alta Fox has now issued a press release and presentation rife with innuendo and misleading statements… The Board recognizes and embraces its role as fiduciaries and will not be pressured into a transaction that is not in the best interests of the Company and its shareholders. The Company has made a counterproposal to Alta Fox that reflects the market value for Alta Fox’s convertible note and remains willing to assist Alta Fox in gaining the liquidity it desires at a price that is fair to both Alta Fox and our shareholders. At the same time, the Company will remain focused on its business transformation plan.”