Full Press Release Details
Announces Nominations of Kathy Tune and
as New Independent Directors
Cooperation Agreement with Summers Value Partners and Announces Formation of
Finance and Strategy Committee to Review Value Creation Opportunities
Steve Craney and George Winn to Retire from the Board at Upcoming Annual
NEW PRAGUE, Minn., September 27, 2021
- Electromed, Inc. ("Electromed" or the "Company") (NYSE
American: ELMD), a leader in innovative airway clearance technologies, today
announced that it will nominate two new independent directors, Kathy
Tune and Joe Galatowitsch, for election to its Board of Directors at the
Company's Fiscal 2022 Annual Meeting of Shareholders (the "Annual Meeting"), to
be held in November. In connection with these nominations, Electromed has
entered into a cooperation agreement with Summers Value Partners LLC ("Summers
Value Partners"), an investment firm that beneficially owns approximately 5.9%
of Electromed's outstanding common stock.
As part of the agreement, Electromed will form a Finance and Strategy Committee of the Board
that will be responsible for, among other things, making recommendations to the
Board with respect to the Company's strategy and value creation opportunities,
including strategic growth and long-term business plans, research and
development, capital allocation and M&A. The new Finance and Strategy
Committee of the Board will be formed immediately following the Annual Meeting
and will be chaired by Ms. Tune.
Craney and George Winn, both current directors, have informed the Company of
their intention to retire from the Board and their respective terms will expire
as of the Annual Meeting. With these changes, the
Electromed Board will continue to have seven directors following the Annual
Meeting, four of whom will have joined in the past three years and a majority
of whom will be women. The Board will elect a new independent Chair of the
Board immediately following the Annual Meeting.
Electromed Board is committed to ongoing refreshment and ensuring that its
directors possess the qualifications and experience needed to drive
Electromed's growth and strategic execution well into the future," said Mr.
Craney, Chairman of the Board. "Both Kathy and Joe possess unique insights and
expertise in the healthcare and medical technology markets, and we are
confident they will add valuable perspectives as Electromed continues its work
to capitalize on the significant untapped market opportunity. On behalf of
George and I, it has been a pleasure to have worked with so many talented
colleagues and we are proud of all that the Company has accomplished over the
Kathy and Joe bring proven track records of growing businesses and highly
relevant experience in areas that are of strategic importance to Electromed,
including corporate board service, medical technology management, commercial execution,
global market development, investment and capital markets, and investor
relations," said Greg Fluet, director and Chair of the Board's Nominating and
Governance Committee. "At Electromed, we are committed to adding directors with
complementary skills and capabilities that contribute toward Electromed's
continued growth and generation of shareholder value. These appointments
further advance our Board refreshment efforts and reflect valuable feedback from our shareholders,
and we appreciate Summers Value Partners' input during this thoughtful
behalf of the entire Board and management team, I would like to thank Steve and
George for their decades of service as directors of Electromed," said Kathleen
Skarvan, President and Chief Executive Officer of Electromed. "They each made
many valuable contributions during their tenures, helping to oversee the
Company's efforts to deliver revenue growth, profitability and product
innovation. Today, Electromed has a proven growth strategy, which is driving
double-digit revenue growth, profitability and strong cash flows. I look
forward to working alongside Kathy, Joe and my other fellow Board members as
well as management to build on this momentum."
Summers, Founder and Managing Member of Summers Value Partners, said, "We
appreciate the constructive dialogue we have had with the Electromed Board and
management team and are confident that the changes announced today will help
Electromed focus on the goal of enhancing value for all shareholders. With a
refreshed Board and newly formed Finance and Strategy Committee, we
believe that Electromed is poised for continued growth and value creation."
to the cooperation agreement, Summers Value Partners agreed to withdraw its
director nominations previously submitted to the Company and support the
Board's full slate of directors at the Annual Meeting. Summers Value Partners
has also agreed to customary standstill and voting commitments, among other
provisions. The full agreement between Summers Value Partners and Electromed
will be filed on a Form 8-K with the U.S. Securities and Exchange Commission.
About Kathleen A. Tune
Tune has over 25 years of investing and business experience. Her background
includes venture capital and growth equity investing, corporate strategy,
business development, investment and capital markets, investor
relations and finance, sales, marketing and reimbursement strategies. Ms. Tune
currently serves as the Chief Financial Officer, Chief Operating Officer and
Board Chair of Marani Health, Inc., a leading development stage maternal and
fetal health company. Ms. Tune is also a Managing Partner with Capita3, an
early stage venture capital fund focused on women led healthcare startup
founders. In addition, Ms. Tune founded and manages the healthcare investment
firm Fourth Element Capital, investing in healthcare technology companies.
Tune is a former partner at Thomas, McNerney & Partners where she led and
managed an investment portfolio with a primary focus in healthcare
technologies. Before that, Ms. Tune was a healthcare equity analyst with Piper
Sandler and served as a product development manager with Solvay, S.A. leading
high-profile projects developing vaccines for the prevention of viral
Tune currently serves on the corporate boards of Marani Health, Inc., Visura
Technologies, Inc. and Agitated Solutions, Inc. She has previously served on
the boards of a number of healthcare technology companies, including VertiFlex,
Inc., CAS Medical Systems, Inc. (Nasdaq: CASM), Galil Medical Ltd Endogenex,
Inc. and Softscope Medical Technologies, Inc.
Ms. Tune holds an M.S. degree in Veterinary
Microbiology from the University of Minnesota and an MBA from the University of Minnesota's Carlson School of Management,
where she was a Robert and Gail Buuck Scholar. She also holds a B.S. in Biochemistry and Microbiology from Minnesota State University,
where she graduated with honors.
About Joseph L. Galatowitsch
Galatowitsch has four decades of experience in medical technology management,
commercial execution, global market development, marketing and business
strategy, management, strategic planning, consulting and sales. Mr.
Galatowitsch most recently served as a Partner and Medtech practice leader at
Guidehouse Consulting, previously known as Navigant, from September 2016