RTI Surgical (NSDQ:RTIX) said yesterday it settled a proxy challenge from Krensavage Partners, entering into an agreement which will increase the size of the board and added a nominee from the investor group.
Mark Stolper will join the board as part of the settlement, the Alachua, Fla.-based company said. In addition, Krensavage, who owns approximately 7% of the outstanding shares of the company, will nominate Mr. Stolper to be elected to the board in an upcoming annual stockholder meeting in May, as well as at next year’s meeting.
As part of the settlement, Krensavage agreed to vote in favor of all nominees proposed by the company for 2017 and 2018, according to the settlement.
“We are pleased to enter this agreement with Krensavage, a valued shareholder of RTI, and we welcome Mark Stolper to our board of directors,” board chair Curtis Selquist said in a press release.
Last July, RTI surgical said it beat back a proxy challenge from Krensavage Partners, after a preliminary count of shareholders’ votes showed that they elected RTI’s slate of directors.
Last February, RTI said that hedge fund Krensavage Partners purchased approximately 3.4 million shares of stock, for a 6% stake in the company, and nominated 4 healthcare vets for its board. In April the company had urged shareholders to approve its own nominees, Peter Gearen, Brian Hutchison, Thomas McEachin, Jonathon Singer, Paul Thomas, Nicholas Valeriani and Shirley Weis as board directors. Weis, McEachin, Hutchinson and Gearing are existing directors and Thomas, Singer and Valeriani are be new faces.