$DAKP Current Board Position.
$DAKP: Dakota Plains comments on Lone Star Value Management’s announcement of its nomination of five director candidates (0.12 -0.01)
'The Board and management welcome stockholders' constructive input and respect the right of stockholders to nominate directors. However, we are disappointed that Lone Star Value has decided to pursue a control proxy contest -- offering no premium to stockholders and potentially triggering significant costs -- at a time when the company is working successfully to manage operations in a severe oil price environment and is pursuing initiatives that can diversify the company's business platform and create new sources of revenue. Lone Star Value's criticisms ring hollow. The Board and management have completely reshaped the company and exited an extremely onerous and value-destroying joint venture structure and have protected value creation at its principal asset, the Pioneer Terminal. Lone Star Value also completely ignores the impact of the oil price collapse and the sweeping loss of value across the midstream market and MLPs. Indeed, just last year Lone Star Value demanded that the company convert to an MLP,(1) which would have been an unmitigated disaster for the company. Lone Star Value's approach smacks of self-interest and either breathtaking ignorance or something worse -- an effort to distract from performance issues across the entire Lone Star Value investment portfolio.(2) Moreover, after the Company appointed William DeRosa of Lone Star Value to the Board in 2014, Mr. DeRosa subsequently violated his fiduciary duties to all stockholders and committed unlawful acts by sharing material non-public information.(3) Mr DeRosa resigned from the Board because of this breach of fiduciary duty and will stand trial in court for his actions later this year. Dakota Plains stockholders would be well served by a careful and critical analysis of any nominee put forward by Lone Star Value given these questions of judgement and duty on the part of Mr. DeRosa.'
