ZimCal responds to Medallion Financial’s ‘untruthful attacks’ in proxy contest

ZimCal Asset Management and its affiliates were recently the target of untruthful attacks by Medallion Financial In a transparent attempt to gain an unfair advantage in the proxy contest and harm ZimCal, Medallion included false and defamatory statements in its solicitation material concerning discussions between ZimCal and Medallion about the possibility of Medallion purchasing preferred trust securities from ZimCal. Those statements, which Medallion knew to be false and misleading when it filed the solicitation material, violate Section 14(a) of the Securities Exchange Act and constitute defamation under applicable state law. To that end, ZimCal has demanded that Medallion promptly withdraw the solicitation material and issue a corrected Form DEFA14A addressing the falsehoods. ZimCal’s position is supported by unequivocal emails to the Company, that clearly show that its primary desire was to remain invested in Medallion. In fact, Medallion approached ZimCal about a payoff as the email records clearly shows. In all communication, ZimCal repeatedly stated that Medallion had tremendous potential and that it could be worth considerably more with improved governance, leadership and strategy. ZimCal also consistently advocated for a collaborative approach with Medallion.