Focused Compounding Rejects Offer for Three Board Seats and Appears Intent on Recovering All of Its Proxy Expenses from Stockholders

PINE MOUNTAIN, Georgia, April 03, 2024 (GLOBE NEWSWIRE) -- Parks! America, Inc. (OTCPink: PRKA) (“Parks! America” or the “Company”), a leading operator of regional safari parks in the United States, announced today that Focused Compounding Fund, L.P. (“FC”) rejected a settlement proposal from Parks! America’s Board of Directors. The Company wants to make clear the terms of the most recent settlement offer turned down by FC, which we believe to be both reasonable and fair.

In a good faith effort to provide FC with board representation commensurate with its approximately 39% ownership stake in Parks! America, the Board of Directors offered FC three board seats on the Company’s seven-member Board. This settlement construct would have given FC direct input on the Board of Directors, equating to approximately 43% representation thereon – which would exceed FC’s current stake in the Company. FC rejected the proposal. FC’s unreasonable demand for control of Parks! America without paying a premium to the Company’s stockholders and without owning a control position in the Company continues to divert resources and corporate focus away from the core business.

Despite FC’s unprofessional comments and inappropriate rhetoric directed toward the Board of Directors and management, the Company nonetheless continues to engage with FC and initiate settlement talks in an effort to avoid costly and distracting proxy fights. Unfortunately, FC has, to date, consistently refused to engage in good faith in reasonable settlement discussions. The Company believes that FC will continue to waste Company resources in its quest for control, and, if FC prevails at the Company’s upcoming Annual Meeting, the Company believes that FC intends to recover its expenses from the Company and place the cost of its campaign on the Company’s stockholders.

In a letter to the Board of Directors on January 18, 2024, FC wrote:

“We’re willing to eat the costs of our side of the proxy fight and not seek to recover expenses from the company as is often done in these situations. It had always been our intention not to seek to recover any expenses. However, our lawyers / advisors suggested we leave this language in to prepare for the possibility that this would be a long and expensive process. So far, our expenses have been manageable. We’re fine eating them. We don’t need to recover expenses from the company if you’re ready to settle now. We may seek to recover expenses if this continues for months.” (emphasis added)