Zagg Inc ZAGG:NASDAQ

Last Price$3.06NASDAQ Closing Price as of 3:59PM ET 8/04/20
NASDAQ 15-minute delayed Bid/Ask Quotes
Today's Change+0.11(3.73%)
Bid (Size)$3.10 (67)
Ask (Size)$3.18 (15)
Day Low / High$2.93 - 3.15
Volume863.8 K

Roumell Asset Management Calls for ZAGG's Board to Restart Sale Process - Shares Fall to 10-Year Low

1:19PM ET 3/18/2020 MT Newswires
Roumell Asset Management wrote in a letter to ZAGG Inc. (ZAGG) that its board of directors should re-initiate the process of selling the company.

Roumell Asset Management, which owns an about 4.5% stake in ZAGG, strongly disagrees with the board's decision to continue as an independent public company as the market is significantly undervaluing ZAGG. According to the activist investor, this is likely to persist due to the lack of credibility of the company's management, which repeatedly failed to hit financial objectives despite ZAGG's "market-leading" products.

"ZAGG is a premier franchise known worldwide for its quality products and we have no doubt that the true value of ZAGG is well in excess of the current stock price," wrote Roumell Asset Management. "However, we believe the public market will not provide a valuation that approximates its take-out value anytime soon."

In the meantime, Roumell Asset Management called for ZAGG's executives to reduce their compensation by at least one-third and for board fees to be paid in stock, to align their financial interests with the company's shareholders.

ZAGG shares were down to a 10-year low of $2.22.

Price: 2.25, Change: -0.39, Percent Change: -14.85