Tony Vejseli, Figure Markets Holdings Inc., and GXD Labs, LLC (collectively referred to as “the Group”) have released a statement to clarify recent events after their meeting on October 28 at White & Case’s Midtown Manhattan offices. During this meeting, the Group engaged with the board of directors (the “Board”) and management team of Ionic Digital, Inc. (the “Company” or “Ionic”). The Group expressed gratitude to White & Case for facilitating the discussion. Still, it highlighted the necessity for clarification after the Company’s press release summary of the meeting, which they feel misrepresented several crucial points.
In light of Ionic’s declaration about its “strong momentum” and “laser-focus” on executing strategic initiatives, the Group expressed concerns regarding the Board’s seeming unfamiliarity with essential operating metrics. The Board seemed caught off guard when it came to addressing its financial and operational performance. This was evident as they struggled to respond to Mr. Vejseli’s inquiries shared on X, raising concerns about the Company’s competitive stance and overall valuation. The Group raised concerns regarding Ionic’s capacity to finalize its audit, which was initially slated for early 2024 but is now projected for Q1 2025, as stated by the Company. This skepticism stems from the scarcity of accessible financial data, such as the Company’s EBITDA and expenses.
The Group highlighted that discussions around alternative liquidity options for shareholders took place, but they expressed concerns that the board had not thoroughly explored or assessed these avenues. The Group expressed apprehensions regarding Ionic’s agreement with Hut 8, highlighting that while a proposed solution was put forth, the Board and management failed to explore any alternative avenues for progress.
In a recent meeting, the Group unveiled a strategic proposal to revitalize the Board. They recommended the resignation of three sitting members—Scott Duffy, Tom DiFiore, and Emmanuel Aidoo—who three new independent directors would succeed, each bringing essential experience and expertise to the table. The proposal, backed by a comprehensive presentation, highlighted the necessity for strategic and seasoned leadership to align the company’s actions with shareholder interests.
Shareholders are urged to examine the proposal closely and contemplate backing a special meeting to cast their votes on the board alterations.