Ronald Chez, who owns 8.4% of Cinedigm (NASDAQ: CIDM), sent a letter to the board today. Chez has been active since 2012 and is looking for a board seat. Recall that Sabra Capital went active the other week. Here's Chez's letter to the Cinedigm board:
I am following up regarding the recent email and communication over the past few days between Gary Loffredo and myself , where you refused to immediately name me as a Board member and arrange for my appointment as the Non-Executive Chairman. You will note that I would not accept any cash compensation as Chairman.
I note the letter that was sent to you on May 12, 2015 by Sabra Capital Partners (which was a part of the Schedule 13D regarding Cinedigm filed on May 19, 2015). They note their loss of confidence in the board in protecting the interests of Cinedigm’s shareholders, a concern that, based on Cinedigm’s dealings with me, I at this point share.
Cinedigm’s response to Sabra’s request for Board representation, and my requests, appear to be its May 18 release claiming that it has hired Korn Ferry to search for new board candidates. I find this to be an unacceptable waste of Company resources designed to insulate the directors and otherwise distract from the real and significant concerns of your shareholders, many of whom have contacted me.
The Board and Management seem to be intent on taking actions designed to circumvent the very real concerns of its shareholders. I find that wholly unacceptable and intend to act in a manner to make sure that the interests of the shareholders of Cinedigm are protected. Considering the issues being raised by the other major shareholders of Cinedigm, I would expect that my actions would be well-received by Cinedigm’s investors.
Cinedigm has significant opportunities to achieve success. My goal continues to be to find the most constructive path to work with management to realize that success. I do not, will not, be thwarted in my efforts on behalf of the owners of Cinedigm.
/s/ Ronald L. Chez