Successfully Executing on its Comprehensive Value Strategy
Reminds Shareholders to Vote “FOR” Genco’s Nominees on the WHITE Proxy Card
The full text of the letter follows:
The Annual Meeting is approaching quickly, and we need your vote “FOR” the re-election of each of Genco’s nominees to help realize the upside potential of your Genco investment.
Vote FOR Genco’s Comprehensive Value Strategy
Our Board and management team are successfully executing on our clear strategy in which Genco is capturing opportunities today and positioning the business to generate growth and shareholder returns through drybulk market cycles. Our recent quarterly earnings results reflect the progress we are making:
- Compelling dividends: Our Board authorized a
$0.42 per share dividend for the first quarter of 2024, a quarter-over-quarter increase and the 19th consecutive quarterly dividend payment the Company has made. Since 2021, we have returned$5.575 per share in total or nearly 25% of our stock price.1 - Reducing debt: We further reduced our debt during the quarter and have lowered our debt by 62% since 2021. We are continuing to reduce our cash flow breakeven rate to the lowest in our
U.S. -listed drybulk peer group.2 - Investing in growth and fleet renewal: We continued taking steps to renew the fleet, closing on the sales of three older Capesize vessels scheduled for special surveys in 2024.
As we execute our strategic initiatives, we are committed to maintaining our industry-leading corporate governance practices which have us ranked #1 in the annual Webber Research ESG Scorecard three years in a row.3 Genco’s directors are also highly qualified, active and engaged business leaders, all of whom we believe bring the right balance of skills and experience in areas relevant to our business.
You can learn more about our Comprehensive Value Strategy and our Board of Directors at www.VoteForGenco.com.
The Choice Between the Genco Board and
Consistent with our commitment to strong corporate governance, our Board and management team have engaged with Economou over the last several months. With the assistance of its advisors, our Board thoroughly reviewed his suggestions for the Company of a share buyback or a tender offer. Our Board concluded these suggestions are not in the best interest of Genco or our shareholders. Our Board considered that detailed analyses did not establish that the suggestions would enhance long-term share price performance, implementing these suggestions could materially hinder our value proposition by increasing our net debt and cashflow breakeven rate while reducing market capitalization and liquidity, and purchasing new vessels instead could create more long-term value and optionality.
Our Board also reviewed Pons and firmly believes he would not be additive to our already strong, focused and experienced Board. Following an interview of Pons, the Board concluded he has no experience in shipping, commodities, cyclical businesses or other industries relevant to Genco’s business.
But don’t just take it from us. We encourage you to follow the recommendation of leading independent proxy advisory firm
In its report ISS highlighted the Company’s progress to deliver value for all Genco shareholders and shared that:5
- “The dissident has since provided limited disclosure regarding his effort to unseat the company's chairman. As the dissident has failed to articulate a compelling case for change, shareholders are recommended to WITHHOLD votes for dissident nominee
Robert Pons .” - “Economou filed an amended Schedule 13D on
May 2 , which seems to reflect an increasing selling of shares since late April.”
You can read more about Economou and Pons and why our Board strongly recommends Genco shareholders vote WITHHOLD on Pons on the WHITE proxy card at www.VoteForGenco.com.
Your Vote Matters: Vote Today FOR Genco’s Nominees
“A vote FOR the management director nominees is warranted.” – ISS Report,
Every vote counts, regardless of how many shares you own. We encourage Genco shareholders to vote “FOR” the re-election of Genco’s nominees and against Economou's nominee by voting “WITHHOLD” on Pons and “AGAINST” Economou’s shareholder proposal on the WHITE proxy card.
We appreciate the support of ALL Genco shareholders, as we continue to take concrete steps to deliver on our Comprehensive Value Strategy to drive long-term sustainable value.
Sincerely, on behalf of the entire Board and management team,
Chairman of the Board | Chief Executive Officer |
Vote Today
By Phone / Online / By Signing and Returning your Proxy
Learn more at www.VoteForGenco.com
If you have any questions or require any assistance with voting your shares, please call or email Genco’s proxy solicitor: Toll Free: 800-322-2885 Email: proxy@mackenziepartners.com |
About
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995
This release contains certain forward-looking statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements use words such as “expect,” “intend,” “plan,” “believe,” and other words and terms of similar meaning in connection with a discussion of potential future events, circumstances or future operating or financial performance. These forward-looking statements are based on management’s current expectations and observations. For a discussion of factors that could cause results to differ, please see the Company's filings with the
Additional Information and Where to Find It
On
Participants
Genco, its directors and certain of its executive officers will be participants in the solicitation of proxies from shareholders in respect of the 2024 Annual Meeting of Shareholders, including
MEDIA/INVESTOR CONTACT:
Chief Financial Officer
(646) 443-8550
(212) 355-4449
1 Genco share price as of
2 See https://assets.website-files.com/66194b028d2943b401e9ea9f/663ba9007d5fffa5879f52c2_Analysis%20Information.pdf for a list of these
3 Based on the
4 See Amendment No. 3 to Economou’s Schedule 13D at https://www.sec.gov/Archives/edgar/data/1326200/000110465924056575/tm2413438d1_sc13da.htm and Exhibit 99.2 to such filing at https://www.sec.gov/Archives/edgar/data/1326200/000110465924056575/tm2413438d1_ex99-2.htm. Such filing indicates that after the
5 Permission to use quotes neither sought nor received.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/65d98cdf-838c-4c89-9fc7-3b33ff72afa3
White Proxy Card
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