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Command Center settles proxy battle, the staffing firm to appoint new board members

April 17, 2018

Command Center Inc., (OCTCBB: CCNI), a Lakewood, Colo.-based industrial staffing firm, announced Monday it reached a settlement in a proxy battle with Ephraim Fields of Echo Lake Capital. Fields had raised concerns about the company in November, saying it was underperforming, and called for a new board. Fields had also raised concerns earlier.

Under the settlement, Command Center will appoint Lawrence Hagenbuch to its board and will nominate seven directors for election to the board at its upcoming meeting: Hagenbuch, Richard Coleman Jr., Steven Bathgate, Steve Oman, R. Rimmy Malhotra, JD Smith and Galen Vetter. All parties have agreed to vote their shares of stock in support of this designated slate.

“Since I first called for changes in the company’s leadership, there have been several important developments,” Fields said. “The company’s chairman has resigned, the CEO has resigned and a nonexecutive board director has resigned. In addition, a current board member will not be nominated for re-election at the upcoming shareholder meeting. I am optimistic that these four people have been replaced with individuals who have the skill set and motivation necessary to act in the best interests of all shareholders.”

Coleman was appointed CEO and director, the company reported in an announcement on April 2. Coleman also serves as board chairman of Hudson Global Inc. (NASD: HSON). Former Command Center CEO Bubba Sandford stepped down effective March 31.

Former Command Center Chairman John Stewart stepped down effective Jan. 16, according to a Securities and Exchange Commission filing. Board member Richard Finlay stepped down effective Jan. 22.