Mawson Infrastructure's stock price soars following board settlement agreement

Investing.com – Mawson Infrastructure Group Inc. (NASDAQ:MIGI) shares jumped 7% on Tuesday. Earlier, the company reached a cooperation agreement with activist investor The Endeavor Investor Group, ending a governance dispute that had lasted for months.

Under the agreement, Mawson will appoint five new directors to the board, including three independent directors—Kyle B. Danges, K. Rodger Davis, and Lisa R. Hough—and two Endeavor affiliates, Cody Smith and Phillip Stanley. Ryan Costello, Kathryn Schellenger, and Steven Soles will step down from the board, and all changes take effect immediately.

The settlement agreement resolves the long-running activist campaign launched by Endeavor, an investor group that has built up a large stake in Mawson. The investor group previously proposed a tender offer and a preferred stock financing plan, which would give it control of the board. In February, Mawson approved a shareholder rights plan to prevent Endeavor from buying additional shares without approval. Endeavor responded in March by filing preliminary consent solicitation materials, seeking to remove the entire board.

Ryan Costello, the chairman of the soon-to-be departing Mawson board, said the board “unanimously believes that entering into an agreement with Endeavor is the best path forward for Mawson and also in the best interests of all shareholders.”

Joshua Kilgore, a managing member of Endeavor Blockchain, LLC, commented: “We are pleased to have reached this agreement and believe Mawson has the potential to become a valuable digital infrastructure platform. We look forward to helping the company realize its potential and create value for all Mawson shareholders.”

The cooperation agreement includes customary standstill provisions.

This article was translated with the assistance of AI. For more information, please see our Terms of Use.