TomoTherapy Inc. (TOMO) said Wednesday that it has reached an agreement with Avalon Portfolio LLC and certain of its affiliates, under which Jonathan McCloskey, a portfolio manager at Avalon Capital Group Inc., has been appointed to TomoTherapy's board, effective April 15.
The parties also agreed to add another mutually acceptable independent director to TomoTherapy's board. With the two additions, the TomoTherapy board would be expanded to eleven members.
In November, Avalon urged the TomoTherapy's board to immediately consider all available strategic options in the wake of the precipitous fall in TomoTherapy's stock price since its 2007 initial public offering, including a possible sale.
It also called on the company to reconsider recent moves to expand its sales and service operations amid declining market demand and tightening credit availability. Avalon also nominated four new directors to serve on the TomoTherapy's board.
Under today's agreement, Avalon agreed to withdraw its nominees. TomoTherapy's annual meeting of shareholders will take place on May 1, and Avalon has agreed to vote its TomoTherapy shares for reelection of all of the company's director nominees.
TOMO is currently trading at $2.70, up 9 cents or 3.45%.
For comments and feedback: editorial@rttnews.com