Arcadia Capital Advisors announced that it has sent a letter to the Chairman of Rimage Corporation’s Board of Directors renewing the investment firm’s demand for Rimage to issue a special dividend to shareholders.
20 July 2011 Arcadia Demands $85 Million Special Dividend from Rimage
22 June 2011 Arcadia Warns Rimage Headed Down Dangerous Path
9 March 2011 Investment Firm Dissatisfied with Rimage Direction
For more information visit: www.arcadiacap.com
Unedited press release follows:
Arcadia Capital Advisors Admonishes Rimage Corporation; Contemplates Strategic Alternatives to Force Board’s Hand to Declare Special Dividend for Shareholders
NEW YORK, Sept. 12, 2011 — Arcadia Capital Advisors, LLC (“Arcadia”), and its Managing Director, Richard S. Rofé (“Rofé”), have issued a letter dated September 12, 2011 to Mr. James L. Reissner, Chairman of the Board of Directors of Rimage Corporation (Nasdaq:RIMG), a reprint of which follows here:
September 12, 2011
7725 Washington Avenue South
Minneapolis, MN 55439
VIA FACSIMILE & FEDEX
Attention: James L. Reissner, Chairman
Dear Mr. Reissner:
Arcadia Capital Advisors, LLC, through its affiliated funds (“Arcadia” or “we”), is the beneficial owner of common stock of Rimage Corporation (“Rimage” or the “Company”). You are aware of this because we have, in the past: 1) issued an open letter to shareholders of Rimage (June 22, 2011); 2) sent a letter directly to the Rimage Board of Directors (July 19, 2011), to which you personally though inadequately responded by way of letter dated July 27, 2011; 3) replied to your letter of July 19, 2011 (by way of ours, dated August 10, 2011). The thrust of all our communications and efforts remains consistent: Rimage shareholders should receive a substantial special dividend; such action represents a superior and far less risky use of cash than forging ahead with the Company’s virtual publishing foray.
Regrettably, neither you nor anyone else from the Company had the courtesy to respond to our August 10, 2011 letter. Copies of all three (3) Arcadia communications, along with your singular reply of July 27, 2011, are here attached for your review. Perhaps the lack of response was your best response. In the absence of meaningful substantiation or explanation for the Company’s decision to move forward with its precarious virtual publishing initiative, there obviously were no words that could serve your purpose—which, after all, is a purpose apparently more driven by conflicted self-interest (your own, of course, but also that of other compliant members of the Board, and management) bent on maintaining a cushy status-quo, than one of maintaining and building shareholder value, which you have been entrusted with in a fiduciary capacity.
Without meaningful and prompt response to this and our previous communications seeking constructive dialogue—and Company action that is consistent with our insistence that a special dividend is the best path to addressing clear-cut over-capitalization—we continue consideration of more direct alternatives available to accomplish shareholder objectives. As example, we envision few obstacles in achieving the necessary requirements for a special meeting, the purpose and scope of which, as you might surmise, will not be limited to our call for a special dividend.
Very truly yours,
/S/Richard S. Rofé
Richard S. Rofé, Managing Director
Arcadia Capital Advisors, LLC
About Arcadia Capital Advisors, LLC
Arcadia Capital Advisors, LLC is a private investment firm based in New York that employs a value-oriented investment philosophy in the management of long/short hedge funds focused on small and micro-cap companies. The firm is led by Richard Rofé and is sponsored by M.D. Sass-Macquarie Financial Strategies.