Figure Markets, in collaboration with shareholder Veton Vejseli, has made a formal request for access to specific company records of Ionic Digital under Section 220 of the Delaware General Corporation Law. The purpose of this request is to investigate potential misconduct by the Board of Directors and evaluate their performance in fulfilling fiduciary duties. The request for access to these records, known as the “Books and Records,” is deemed essential for safeguarding shareholder interests.
There are significant concerns regarding potential self-dealing behavior by board members and actions that may have disadvantaged shareholders at Ionic Digital. Specific areas of investigation include agreements with competing entities, excessive board compensation packages, restrictions on trading of company stock, and delays in registering Class A Common Stock. Such actions raise suspicions that the Board may be prioritizing its own interests over those of shareholders.
Pattern of Behavior
Evidence suggests a pattern of behavior by the Board that places shareholders at a disadvantage. This pattern includes the rejection of proposals during bankruptcy proceedings, approval of deals with competing companies without proper shareholder oversight, self-appointment of decision-makers in critical processes, generous compensation packages for board members, and unreasonable delays in listing and registering the company’s stock.
Mike Cagney, CEO of Figure Markets, expressed disappointment in the treatment of creditors during the bankruptcy proceedings and emphasized the importance of improving management, governance, and strategy at Ionic Digital to salvage value for shareholders. In response to widespread dissatisfaction among shareholders, Figure Markets initiated a social media campaign to secure support for a special shareholder meeting, aiming to address concerns of governance and transparency.
Figure Markets and Veton Vejseli believe that the Board’s actions may constitute gross negligence, warranting potential removal. There are concerns that shareholders have been stripped of their voice in company governance, prompting the demand for access to company records as a critical step towards restoring shareholder democracy at Ionic Digital. The inspection request is crucial for investigating potential misconduct and evaluating the Board’s performance of fiduciary duties. Collaboration and urgent action from the Board are urged to address shareholder concerns effectively.
Figure Markets is a disruptive force in the finance industry, leveraging blockchain to democratize financial services. Their innovative approach includes a decentralized custody marketplace for a diverse range of assets, providing members with control over their assets and data. Founded by a seasoned team of entrepreneurs and operators, Figure Markets is backed by leading venture capital firms and strategic partners. Their goal is to empower individuals by disintermediating traditional financial institutions and offering unique investment opportunities in a decentralized manner. Learn more about Figure Markets at www.figuremarkets.com.