A 3% shareholder of Pinnacle Airlines has called on the carrier's board to appoint two new shareholder-appointed directors, following concerns over the carrier's stock trading at a near all-time low.
Wayne King, a private investor from New Jersey who holds a 2.78% stake of Pinnacle's common stock, had commented that "shareholders are no doubt distressed to see the value of their investment fall and frustrated to see Pinnacle's market value at a massive discount to its net worth", said the airline in a filing.
Pinnacle's stock was trading at $0.83 as of mid-day today, just slightly above its 52-week low of $0.80 and way below its 52-week high of $8.68.
King has requested for the airline to appoint two new directors, to be appointed by shareholders, with full voting rights.
"Due to the current heightened concerns, the board would best serve shareholders by acting promptly rather than waiting six months until the next annual meeting," said Pinnacle.
It added that King plans to engage in talks with other shareholders, and has encouraged the board to do the same.
Earlier this month, Pinnacle said it has initiated a cost reduction exercise, following a pre-tax loss of $5 million in the third quarter. Its debt stood at $736 million at the end of the third quarter.