ChinaCast Education Corporation announced today that Glass Lewis & Co, an independent proxy advisory firm recommends that ChinaCast shareholders vote for all nominees on management’s BLUE proxy card at the Company’s upcoming Annual Meeting.
In its analysis, Glass Lewis notes that shareholder return and operating performance have compared reasonably or favorably with that of its peers in recent years and that the board appears to us to be making an earnest attempt to maximize shareholder value and resolve the proxy fight.
Commenting on the business plan put forward by Ned Sherwood, Glass Lewis commented that the Dissidents’ plan if fully implemented, could potentially leave the Company with a dangerously weakened working capital position that the Dissidents have not been adequately addressed.
Glass Lewis additionally expressed their concerns in agreement with those raised by the incumbent Board regarding one of Mr. Sherwood’s nominees, Derek Feng, stating that “We are inclined to believe that a potential conflict of interest could exist should Mr. Feng be appointed to the Company’s board.”
The Company issued the following statement regarding the Glass Lewis recommendation:
“ChinaCast Education is pleased that this leading independent proxy advisory firm recognizes the value that has been created by the current Board and the potentially damaging impact of Ned Sherwood and Mr. Feng being elected to the board. The Company urges shareholders to vote the BLUE proxy card for all proposals, including the board’s nominees.”
Any shareholders with questions or that require assistance in voting their shares should contact the Company’s proxy solicitors, MacKenzie Partners, toll free at 1-800-322-2885, or Advantage Proxy, toll-free at 1-877-870-8565.