Stockholder urges SmartRent to address strategy, governance mattters

Harris Heyer and Michael Holder, partners of 10th Mountain Management, as investment managers to Scout Fund I, LP, which is a beneficial stockholder of SmartRent, issued the following open letter to the SmartRent Board of Directors, Lucas Haldeman, Chairman & CEO, and all shareholders. The letter stated, in part, “Dear Members of the Board, Mr. Haldeman, and SmartRent shareholders, Since merging with Fifth Wall Acquisition Corp. I, SmartRent’s shares have plunged more than 70%1. We believe this alarming decline reflects investor disappointment, confusion, and skepticism. We are troubled by management’s downplay of new unit deployments, and their insufficient efforts to address valid concerns, whether due to poor communication or deliberately avoiding discussion of worrying trends. Though we engaged with management privately on multiple occasions, our line of questioning about corporate governance prompted a swift referral to external counsel. Management ignored our repeated requests for a phone call to discuss these matters. The optics are terrible. We are calling on SmartRent’s management team and Board to promptly address and clarify the unresolved issues, and we urge fellow shareholders to do the same.”