United Homes Group concludes strategic review, to continue strategic plan

United Homes Group (UHG)announced that the special committee of independent directors previously appointed by the board of directors in May has, in conjunction with its legal and financial advisors, concluded its review of strategic alternatives. After evaluating a full range of strategic alternatives, including a potential sale, merger or other transaction, the special committee has unanimously determined that, in light of current macroeconomic conditions, continuing to execute on the company’s strategic plan as an independent, public company is in the best interests of the company and its stockholders at this time. In connection with the conclusion of the strategic review process, four members of the board, Robert Dozier, Jason Enoch, Alan Levine and James Pirrello, informed Michael Nieri, the controlling stockholder and executive chairman of the company, that they were willing to remain on the board so long as the company’s existing management team was fully empowered to execute on the company’s strategic plan and Nieri stepped down from his position as executive chairman of the company and agreed to forego any remaining cash compensation to which he would be entitled under his existing employment agreement, in furtherance of company cost-saving initiatives. Nieri would not agree to the foregoing conditions. Accordingly, on October 19, the following members of the board announced their intention to resign from the board, effective no later than November 14, in the hope of facilitating an orderly transition by allowing the company to timely file its upcoming quarterly report on Form 10-Q and enabling Nieri to identify new directors. In addition, on October 19, Nikki Haley announced her intention to resign from the board, effective no later than November 14.