Key Takeaways:
Tice P. Brown, who holds a 12.1% stake in Empery Digital Inc. (NASDAQ:EMPD), is publicly demanding the company immediately resume its recently halted stock buyback program, according to a letter filed on April 27.
"I write to demand Empery Digital immediately restart maximum daily buybacks," Brown said in the letter addressed to the company's shareholders and board of directors.
Brown's beneficial ownership of 3,342,022 shares was confirmed in an amended Schedule 13D filing. The activist investor criticized the company for halting repurchases ten business days ago without explanation, stating the move leaves "millions of dollars of NAV on the table." Brown estimates Empery Digital has wasted over $15 million in operating expenses since last summer.
The activist argues that the buyback was the only justification for the company's continued existence, re-allocating approximately $0.17 per share of net asset value to remaining shareholders. Brown highlighted that CEO Ryan Lane personally owns only around 0.3% of the company's stock, suggesting a misalignment with shareholder interests.
The Schedule 13D/A filing clarified that Brown's ownership percentage rose from 10.0% due to a decrease in the issuer's total shares outstanding to 27,667,402, not from new purchases by Brown. The filing also noted that Brown had previously considered nominating himself to the board but is not currently pursuing that action, while reserving the right to do so in the future.
The public demand escalates pressure on Empery Digital's management to address shareholder concerns about capital allocation. Investors will now watch for the board's response to the letter, which could determine the next steps in this activist campaign.
This article is for informational purposes only and does not constitute investment advice.
