PhenixFIN Corp shareholders approve board election and proposals

PhenixFIN Corporation (NASDAQ:PFX), a financial investment firm with a market capitalization of $108.44 million and impressive year-to-date returns of 9.2%, announced the results of its Annual Meeting of Stockholders that took place on March 12, 2025. The meeting led to the approval of all proposed items, including the election of a director, ratification of the company’s independent auditor, and an advisory vote on executive compensation.

The company’s shareholders elected Arthur S. Ainsberg to the board of directors for a three-year term, with 821,563 votes in favor and 23,436 withheld. There were 587,859 broker non-votes for the director’s election.

In addition, shareholders ratified the appointment of KPMG LLP as PhenixFIN’s independent registered public accounting firm for the fiscal year ending September 30, 2025. The proposal received overwhelming support, with 1,403,064 votes for, 27,613 against, and 2,181 abstentions.

The third proposal, an advisory vote on executive compensation, also passed with 823,309 votes for, 15,531 against, and 6,159 abstentions, alongside the same number of broker non-votes as the director’s election.

The voting outcomes indicate shareholder confidence in the current management and strategic direction of PhenixFIN. According to InvestingPro data, the company has demonstrated strong financial performance with a 26% return over the past year and maintains healthy profitability metrics, including a P/E ratio of 6.58. The company, which is based in New York, NY, and incorporated in Delaware, has been operating under the PhenixFIN name since its name change from Medley Capital Corp in January 2011.

The quorum for the Annual Meeting consisted of 1,432,858 shares of the company’s common stock, out of the 2,019,778 shares outstanding as of the record date, January 13, 2025. InvestingPro analysis reveals additional insights about PhenixFIN’s financial health, with revenue growth of 7.21% and a solid current ratio of 1.35. Subscribers can access more than 10 additional key metrics and exclusive financial insights.

This report is based on a press release statement and provides a summary of the key decisions made by the shareholders of PhenixFIN Corporation during their recent Annual Meeting.

In other recent news, AM Best has affirmed the credit ratings of two insurance subsidiaries under PhenixFIN Corporation, namely National Security Fire and Casualty Company (NSFC) and Omega One Insurance Company, Inc. The Financial Strength Rating (FSR) of B (Fair) and the Long-Term Issuer Credit Rating (Long-Term ICR) of "bb" (Fair) for NSFC have been confirmed, with a stable outlook. Similarly, Omega’s FSR of B- (Fair) and Long-Term ICR of "bb-" (Fair) were also affirmed, reflecting a stable outlook. These ratings highlight NSFC’s adequate balance sheet strength and Omega’s strong balance sheet strength, despite both companies having marginal operating performance and limited business profiles.

However, AM Best has maintained the ’under review with negative implications’ status for National Security Insurance Company (NSIC), another PhenixFIN subsidiary. NSIC’s ratings reflect a weak balance sheet strength and adequate operating performance, with ongoing challenges due to changes in loss reserve methodology and statutory strain from its annuity business. The negative implications status indicates the need for successful execution of recapitalization plans and improved operating performance. These developments are significant for investors monitoring PhenixFIN Corporation and its subsidiaries.

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