ZimCal ‘concerned’ about ‘excessive’ pay at Medallion Financial

ZimCal Asset Management, LLC, and its affiliates BIMIZCI Fund LLC, Warnke Investments LLC and Stephen Hodges is one of the largest investors in Medallion Financial, has over $15.58M in debt and equity investment exposure and has been invested in MFIN for over 3 years. ZimCal is currently in a proxy contest to replace two Directors on MFIN’s Board of Directors with two more individuals. Its common stock and debt are the only investments it has in MFIN and it does not own any other MFIN-related securities. “We believe we will prevail in this proxy contest; we believe that stockholders want change and that our nominees are the first step in that direction. ZimCal ONLY benefits through an increase in the value of MFIN and if MFIN can implement the changes ZimCal is recommending, ZimCal believes that the upside potential for the Company is tremendous. The Company has attempted to distract stockholders with speculation about ZimCal, its interests and its intentions. We are disappointed by the Company’s recent personal and untruthful attacks that forced us to issue a Cease and Desist letter. However, we are encouraged by their desperation, which indicates that they are threatened by strong stockholder support for our candidates. If ZimCal’s nominees are not elected, the Board would likely maintain the status quo, which has been very lucrative for the management team. If ZimCal’s nominees are elected, and on behalf of stockholders, we would immediately address the excessive compensation structure of MFIN’s President and management team. We believe that change must happen now. If stockholders want compensation that is fair and does not enrich management at the expense of stockholders, we need their support to make any changes. Even if ZimCal’s 2 candidates are elected, we still only represent 25% of the Board, but any change to the current Board is a huge step in the right direction.”