In a difference of opinion over the way Mammoth Energy’s leadership was operating, board of directors member Jonathan H. Yellen has resigned immediately.
The resignation was revealed in a May 14 filing the company made with the Securities and Exchange Commission. Yellen, a Dallas attorney and founder of investment company Greyhart Capital, also informed the company in a May 8 email he disagreed with the company’s status of still being owed $227 million for its electrical work in Puerto Rico after Hurricane Maria.
“The amounts involved are significantly higher than the company’s current market capitalization and, therefore, are undoubtedly material to the company. As you know, I voiced my concerns and objections in detail during the Audit Committee meeting on Thursday, May 7, and in correspondence later that day. I received only limited and unconvincing information, however, to support the reporting position I questioned, which remains unchanged and is ultimately reflected in the financial statements filed as part of the company’s quarterly report on Form 10-Q filed on May 11,” stated Yellen.
He also cited other differences.
“I was frustrated by the cavalier approach taken toward corporate governance. I could cite a number of specific examples of deficient governance processes or decisions, many of which I attempted to remedy through proposed process changes. One notable example relates to the process followed by the Board and the committee in selecting new directors and evaluating the independence of new and existing directors,” wrote Yellen in his resignation letter.
“Overlaying these two specific concerns, my general sense that decisions by the Board at Mammoth are not being made in the way they should. I ultimately concluded that this dynamic is both unacceptable and beyond my power to rectify,” he concluded.
In the SEC filing, Mammoth Energy stated it disagreed with Yellen’s comments and also rejected his suggestion the Puerto Rico bill totaling hundreds of millions is not appropriately presented and disclosed.
Yellen spent only about a year on the company’s board of directors after being appointed in November 2019 following the resignation of board member Paul K. Heerwagen IV. An SEC filing at the time cited no reason for Heerwagen’s resignation, but he was quickly replaced by Yellen.
Click here to view the SEC filing.