RumbleON Resolves Proxy Contest With Coulter-Tkach; Appoints Mark Tkach As Interim CEO

Powersports platform RumbleON Inc RMBL has appointed Mark Tkach as its Interim Chief Executive Officer.

Tkach is the Co-Founder of the RideNow powersports group, acquired by RumbleOn in August of 2021, and a major shareholder.

On June 11, 2023, Marshall Chesrown, CEO and a director, provided a notice of his resignation as CEO, effective on June 15, 2023.

In a regulatory filing, the company disclosed allegations surrounding Chesrown’s use of company resources. The independent directors take all such allegations seriously and have hired independent counsel to assist in an investigation, which is ongoing.

Meanwhile, the company has made no determination regarding the allegations and there have been no releases or other agreements with Chesrown. 

Chesrown will continue to serve as a member of the company’s Board of Directors.

RMBL also has agreed with the Coulter-Tkach Group to resolve all outstanding proxy matters currently subject to contest at the Annual Meeting of Shareholders, scheduled for July 14, 2023.

As per the agreement, the Board will expand temporarily from seven to nine members to allow Melvin Flanigan and Mark Tkach to immediately join the Board.

The terms also include naming Steve Pully as board Chairman and reorganizing the board committees.

Price Action: RMBL shares are trading higher by 1.31% at $10.02 on the last check Friday.