The company said Friday that it has reached an “agreement in principle” with Coulter and Tkach after they
challenged the board makeup and opposed RumbleOn’s proxy to be voted on at the company’s annual meeting on July 14. RumbleOn has a market cap of about $170 million,Before Chesrown’s departure, the board was advised of “certain allegations” surrounding Chesrown’s “use of company resources,” according to a federal filing on Friday.
Allegations raised by Tkach and Coulter included the paying of severance of $3.375 million to a former chief operating officer who was only with the company for 15 months, a time that the market value of RumbleOn fell 80%.“The independent directors take all such allegations seriously,” the board said in the filing, adding it has hired independent counsel to assist in an ongoing investigation.
Under the agreement, the board expands temporarily from seven to nine members to allow Melvin Flanigan and Tkach to immediately join. Flanigan is the former chief financial officer of Camping World Holdings.the Coulter-Tkach group and all of the participants in their proxy statement will withdraw all existing nominations and proposals in connection with the 2023 annual meeting.Steve Pully, who was appointed to the board in May, becomes chairman.