• The High Point-based upholstery and mattress fabric source, Culp Inc., strikes a cooperation agreement with a significant shareholder, B. Riley Financial Inc.
• Culp Inc. appoints Kenneth D. Grossman, a representative from B. Riley, to its board of directors.
• Grossman brings considerable expertise to Culp’s board, with noteworthy experience in corporate finance operations and strategy.
• The agreement includes a standstill provision that will run until 15 days prior to the deadline for submission of 2022 shareholder nominations.
• The standstill provision prevents B. Riley from increasing their share ownership above 19.9%.
• Culp’s Board of Directors expressed enthusiasm about the appointment and the diversity of knowledge it brings.
• The agreement works towards a common objective of continued strong performance and value creation for all shareholders.

Culp Inc’s New Board Appointment and Agreement with B. Riley Financial Inc.

Shareholder Cooperation Agreement

Culp Inc. has recently made an impactful move towards strengthening their company’s governance structure. In a strategic play, the company has entered into a cooperation agreement with B. Riley Financial, one of its substantial shareholders. Notably, this cooperation comes with a significant change to their board of directors.

A New Appointment to the Board

As part of this partnership, Culp has welcomed Kenneth D. Grossman, a representative from B. Riley, to join its decision-making fold. Mr. Grossman is set to bring a wealth of expertise to Culp’s board, particularly his insight in finance operations and strategy. This knowledge diversification is greatly beneficial for the ongoing growth of the company.

A Standstill Provision

Alongside this, the agreement features a standstill provision. This provision bars B. Riley from escalating its share ownership above the current 19.9%—a move intended to retain balanced control between shareholders. This standstill will be upheld until 15 days prior to the submission deadline for 2022’s shareholder nominations.

Way Forward

With Grossman’s appointment and the shareholder cooperation agreement, Culp Inc. is looking forward to a constructive relationship with B. Riley Financial. The newly minted arrangement works towards promoting productivity, consistent performance, and value creation that benefits all shareholders amidst the marketplace challenges.

originial article https://www.furnituretoday.com/?p=318046

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