HomeStreet Has Received At Least One Letter of Intent for the
FNMA DUS License and MSRs
Believes a Sale Could Generate more than $100 million in Proceeds
The Gain Would Allow HomeStreet to Transform its Balance Sheet
and Remove Viability Concerns
Believes Maximizing the Value of the FNMA DUS License Will
Result in a Significant Revaluation of the Stock
Encourages Shareholders and Interested Buyers to Contact
Independent Directors of Board
DALLAS, Sept. 20,
2023 /PRNewswire/ -- Blue Lion Capital, a
Dallas-based investment firm
("Blue Lion") that beneficially owns approximately 2.0% of the
stock of HomeStreet, Inc. (Nasdaq: HMST) ("HomeStreet" or the
"Company"), has issued a letter to shareholders to update them on a
recent conversation with HomeStreet Bank and potential strategic
alternatives being considered.
During a recent conversation with Mark
Mason and Jim Mitchell (Lead
Independent Director), Mark detailed potential options
that HMST could pursue to alleviate liquidity, capital and
viability concerns. Despite expressing doubt that HMST's FNMA
DUS License and associated MSRs could ever receive an offer of
$100M or more, they encouraged
Chuck Griege to have interested
parties contact the Company. As of this writing, at least one
interested buyer has sent a letter of intent to HMST. Some
information about the conversation with management and letter of
intent is presented in the letter (see link for letter).
Blue Lion has also learned that Mark
Mason is aggressively pursuing a capital raise as an
alternative to selling the DUS license. The raise would
likely be so dilutive to current shareholders that it could trigger
a change of control and possibly a change of control payment to
Mark Mason exceeding $5 million. How could such a risky and
massively dilutive transaction be considered by the Board of
Directors at this time? Blue Lion believes the only
responsible and achievable solution for HMST and its shareholders
is to maximize the value of the DUS license.
Blue Lion is strongly encouraging all shareholders to contact
HomeStreet's independent directors and express support for this
strategy. To do so, simply send an email to
CorporateSecretary@HomeStreet.com and it will be
distributed.
Important Information
Investor Contact:
Chuck Griege
Managing Partner
Blue Lion Capital
214-855-2430
chuck@bluelioncap.com
Copyright (c) 2023
View original content to download
multimedia:https://www.prnewswire.com/news-releases/blue-lion-capital-updates-shareholders-on-homestreet-bank-301933806.html
SOURCE Blue Lion Capital