Red Oak Partners Submits Section 220 Books and Records Request to Educational Development Corporation
BOCA RATON, Fla., July 13, 2018 /PRNewswire/ -- Red Oak Partners, LLC ("Red Oak"), a long-term investor in Educational Development Corporation ("EDUC" or the "Company") (NASDAQ: EDUC) and the largest outside investor with a 7.7% ownership stake, announced today that pursuant to Section 220 of the Delaware General Corporation Law (the "DGCL"), it has requested that EDUC make available for inspection and copying the books and records (the "Books and Records") of the Company pertaining to the following:
- the proposed long term equity incentive plan;
- the failed integrated direct-sales order system;
- past financings;
- financial results and guidance;
- and board composition and corporate governance.
Based on discussions with management, information provided in the Company's public filings and other publicly available information, and the Board's unwillingness to engage their largest shareholder and reconsider the grossly misaligned and management enriching proposed equity incentive plan, Red Oak believes this Books and Records request is critical to protect shareholders' best interests. The flawed long term equity incentive plan being proposed at the Company's annual meeting is another example (in a long list of examples) in which the Board of Directors ("BOD" or the "Board") has demonstrated inadequate oversite and potential mismanagement or wrongdoing that warrant further inquiry from shareholders. The Books and Records request will allow Red Oak to analyze board processes, determine whether members of the Company's management and/or Board engaged in proper due diligence, and determine whether both management and Board have upheld their fiduciary duties to shareholders as it pertains to the aforementioned items included in the request. Once again, as stated in our letter to the Company's Board dated July 3, 2018, we urge the Board to postpone the 2018 Annual Meeting and work closely and in good faith with us to address the issues we have raised.
ABOUT RED OAK
Red Oak Partners, LLC manages funds which invest in underfollowed and mispriced micro and small cap companies. Red Oak, founded in 2003, employs a long-term, value-oriented investment approach and believes that strong corporate governance in combination with alignment with shareholders is necessary to optimize shareholder value and minimize potential conflicts of interests.
SOURCE Red Oak Partners, LLC
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