Dolphin Limited Partnership III, L.P. and another entity (“Dolphin“) currently hold approximately 3.5% of the outstanding common stock of Qumu Corporation, a Minnesota corporation (NASDAQ: QUMU).
Given Qumu’s modest revenue and market capitalization and long record of significant operating losses, even during favorable demand environments, Dolphin now seeks a strategic sale process to benefit all shareholders.
Dolphin sent a letter dated July 26, 2021 to Mr. Neil E. Cox, Qumu’s Non-Executive Chairman of the Board (the “Dolphin Letter”), which is attached. The Dolphin Letter, generally sets forth: (i) Dolphin’s Qumu involvement since 2013, (ii) Dolphin’s initial 6.5% ownership and prior Schedule 13D filings, (iii) Dolphin’s sponsored directors from 2013-2018, (iv) Qumu’s apparent $150 million purchase and investment in its video conferencing platform, (v) Qumu’s episodes of excessive cash burn, (vi) Qumu’s equity capital raises and subsequent performance, (vii) Qumu’s board rotation, and (viii) Qumu’s rollercoaster share price and public disclosures.
The Dolphin Letter concluded by asking Qumu for correction of any material fact contained therein. By way of letter of July 28, 2021, Qumu indicated the Dolphin Letter was shared with the board and senior management but did not offer any correction.