The largest single public shareholder of gaming printer supplier TransAct Technologies has indicated it seeks greater influence over the governance of the supplier’s operations.
According to a report in GGRAsia, Grand Slam Asset Management LLC, which controls around 7 percent of TransAct stock, Grand Slam Manager Mitchell Sacks and Grand Slam Capital Master Fund Ltd., a Cayman Islands fund the company managers, jointly informed the U.S. Securities and Exchange Commission that TransAct’s management of financial performance and corporate governance would benefit has room for improvement, which Grand Slam could provide with a greater say in the running of the company.
“We have remained passively invested as TransAct Technologies’ management team has built a dominant position in the casino and gaming printer markets, and introduced an exciting product offering in the restaurant solutions business,” the joint letter to the SEC says.
“However, given recent events and the company’s poor stock performance, we believe that TransAct Technologies will benefit from Grand Slam taking a more active stance… Consequently, with the sending of this letter, Grand Slam is modifying our SEC ownership filing to indicate our intention to influence management.”
The letter also calls for expansion of the company’ board of directors. “Grand Slam believes that TransAct Technologies will benefit from an expansion to the board of directors by two industry veterans: one with major restaurant chain operating experience and one with software development and sales experience. As interested shareholders, we believe that the next 24 months are critical to developing a leading position in the restaurant solutions marketplace,” the letter says, referring to a non-gaming product segment of TransAct.
The letter also expressed concern that the only Wall Street veteran on the TransAct board had been a heavy seller of its stock.
“This director owns 87,266 shares, which is less than 1.2 percent of TransAct Technologies’ outstanding stock. Grand Slam would welcome a change ensuring that shareholders have an outside financial board member who is and has been heavily committed to TransAct Technologies’ success from both an operating and stock performance perspective,” the letter to the SEC says.
