ZimCal Responds to Personal Attacks by Medallion Financial Corp.

ZimCal Asset Management, LLC and its affiliates BIMIZCI Fund LLC, Warnke Investments LLC and Stephen Hodges (collectively “ZimCal”) were recently the target of untruthful attacks by Medallion Financial Corp. (“Medallion”). In a transparent attempt to gain an unfair advantage in the proxy contest and harm ZimCal, Medallion included false and defamatory statements in its solicitation material concerning discussions between ZimCal and Medallion about the possibility of Medallion purchasing preferred trust securities (essentially subordinated debt) from ZimCal. Those statements, which Medallion knew to be false and misleading when it filed the solicitation material, violate Section 14(a) of the Securities Exchange Act (“Section 14(a)”) and constitute defamation under applicable state law. To that end, ZimCal has demanded that Medallion promptly withdraw the solicitation material and issue a corrected Form DEFA14A addressing the falsehoods. ZimCal’s position is supported by unequivocal emails to the Company, that clearly show that its primary desire was to remain invested in Medallion. In fact, Medallion approached ZimCal about a payoff as the email records clearly shows. In all communication, ZimCal repeatedly stated that Medallion had tremendous potential and that it could be worth considerably more with improved governance, leadership and strategy. ZimCal also consistently advocated for a collaborative approach with Medallion.

View ZimCal’s full letter to Medallion here. Or at www.restoretheshine.com/materials. A copy of the letter will also be filed with the Securities and Exchange Commission.

While it is unfortunate that Medallion has chosen to personally attack ZimCal’s nominees rather than engage in a productive discussion of issues concerning all stockholders, it is no surprise. The SEC is seeking an order permanently barring Andrew Murstein from acting as an officer or director of any public company and requiring him to pay civil monetary penalties. ZimCal has repeatedly demanded that the Board engage an outside law firm and conduct an independent investigation of the facts and circumstances leading to the SEC’s complaint; ZimCal thinks that a responsible Board would have already done so as a matter of course in order to protect the interests of all stockholders. In our opinion, the Board, whose members include Mr. Murstein’s father and father-in-law, has clearly decided that its most important mission is to protect Andrew Murstein regardless of what the facts may be. It seems apparent to us that Mr. Murstein views our nominees as an existential threat to the cozy relationships that have prevented an independent investigation into his actions and will engage in personal attacks, vague insinuations, half-truths and falsehoods to protect his personal position. We fully expect Mr. Murstein to continue to try and muddy the waters and distract stockholders from the real issues at hand.