Full House now up for sale
A group of shareholders in Las Vegas-based Full House Resorts can recruit other shareholders to help them remake the company’s board. The Securities and Exchange Commission says the group, led by former Pinnacle Entertainment CEO Dan Lee, may solicit their peers to approve a special meeting, where a vote would be taken on the matter.
Lee’s group controls 6.2 percent of Full House shares. To change the makeup of the board, they would need approval from shareholders controlling 40 percent of Full House. Lee’s group wants to double the size of the board to 10 members, which would give the shareholders more influence over the direction of the company. A trust set up by the company’s late CEO that owns 9.4 percent of Full House has sided with the shareholder group, the Las Vegas Review-Journal reported.
Full House’s stock price has declined by 55 percent over the past 12 months. The company also breached its credit covenants.
“Given the company’s terrible performance to date, we believe a new independent board is needed to build value for all shareholders.” Lee said in a statement.
Last month, Full House, which operates three casino and manages a Lake Tahoe resort, put itself up for sale.
