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Howard Stutz
 

SEC approves Full House shareholder solicitation

29 October 2014

A group of Full House Resorts, Inc. shareholders were given the go-ahead by the Securities and Exchange Commission Tuesday to solicit other stockholders of the casino operator on holding a special vote to remake the company’s board.

The five-person group, headed by gaming executive Dan Lee, controls 6.2 percent of the Las Vegas-based company’s shares. They will need approval from stockholders controlling 40 percent of Full House to approve the special meeting.

Lee’s group wants to double the size of the board to 10 members in order to change the company’s direction.

A trust set up by the company’s late CEO that owns 9.4 percent of Full House has sided with the shareholder group.

Full House’s stock price has declined by 55 percent over the past 12 months. The company also breached its credit agreements.

“Given the company’s terrible performance to date, we believe a new independent board is needed to build value for all shareholders.” Lee said in a statement.

Last week, Full House announced changes in its bylaws that would make it difficult to call special meeting before the end of the year. The company, which operates three casinos and manages a Lake Tahoe resort, put itself up for sale a week ago.