NEW YORK, July 7, 2010 (GLOBE NEWSWIRE) -- On Friday, July 2, 2010, Strategic Turnaround Equity Partners, LP filed suit in the Michigan Circuit Court for Wayne County, seeking an order directing United American Healthcare Corporation (UAHC) to hold its 2009 Annual Meeting of Stockholders on or before August 4, 2010, holding in place the record date, June 7, 2010.
"It has now been over 600 days since UAHC last held an Annual Meeting; I don't believe I have ever witnessed a Board of Directors so intent on denying its stockholders the ability to vote for directors. Strategic is not going away, no matter how much of a mockery we believe this Board has made of corporate governance. We are not deterred by the constant delaying tactics this holdover Board has engaged in and are confident that once the stockholders are finally given a voice they will remove this Board," stated Strategic nominee Gary Herman.
Strategic Turnaround Equity Partners, LP (Cayman) ("Strategic") and the other participants in the solicitation urge stockholders of United American Healthcare Corporation ("United" or the "Company) (Nasdaq:UAHC) to vote the Gold Proxy Card to elect its three highly qualified and experienced director nominees, Gary L. Herman, Seth M. Lukash, and Fred Zeidman, for the Company's 2009 annual meeting. Strategic and the other participants in this solicitation (collectively, the "Strategic Group" or "we") are the beneficial owners of an aggregate of 814,963 shares of common stock of United, representing approximately 9.98% of the outstanding shares of common stock of the Company.
Strategic has made repeated attempts to work cooperatively and constructively with the Company to achieve our objective of creating a Board that would truly represent the best interests of all stockholders. Unfortunately, the Board has failed to seriously address our concerns, and we are engaging in this election contest as a last resort.
It is the opinion of Strategic and its nominees that:
- Under the current Board, United shareholders have witnessed a dramatic deterioration in the value of their shares
- Under the Company's Chairman Tom Goss and its CEO William Brooks, United has lost all of the Company's major contracts; some of these contracts had been with the Company 10+ years
- Earlier this year, United entered into an agreement with its largest stockholder allowing the stockholder to "put" his shares to United at $1.25 per share in exchange for giving the existing board voting control over his large block
- United has recently entered into a transaction with an entity controlled by the same stockholder; through July 6, 2010, United's share price has declined by approximately 30% from its value before the deal was announced