The Written Record Disproved Medallion Financial Statements Before. It Does So Again. BIMIZCI Issues Point-by-Point Rebuttal of Medallion's Investor Presentation. Urges Stockholders to Vote for Change

Key Terms

trust preferred securities financial

Trust preferred securities are a hybrid investment that blends features of bonds and stocks: an issuing company places assets into a separate trust which sells these securities and passes regular payments to holders much like bond interest. They can behave like equity for regulatory or accounting purposes while still offering a fixed-income stream, so they matter to investors because they carry higher income than plain bonds but also higher risk and potential sensitivity to issuer capital and credit moves.

total shareholder return financial

Total shareholder return is the overall gain an investor gets from owning a stock, combining changes in the share price plus any cash payouts like dividends, and assuming those payouts are reinvested in more shares. Investors use it like a single score that shows the true return on their investment—similar to checking both the growth of a savings account and the interest earned—to compare how well different companies or investments perform over time.

tangible book value financial

Tangible book value is the accounting measure of a company’s net worth after removing intangible items like goodwill, patents and trademarks, leaving only physical and financial assets minus liabilities. For investors it offers a clearer view of the company’s hard-asset backing per share—like estimating the cash you could get by selling the furniture, machinery and cash in a house—helping gauge downside risk and whether a stock may be cheaply valued.

debentures financial

A debenture is a company’s long-term IOU sold to investors that promises regular interest payments and repayment of principal at a set date; unlike equity, it represents debt rather than ownership. Think of it like lending money to a business in exchange for a fixed stream of payments, so investors watch a debenture’s interest rate and the borrower’s financial health to judge income reliability and risk of not being repaid.

charge-offs financial

Charge-offs occur when a lender decides a loan or debt is unlikely to be repaid and removes it from its active assets, treating the amount as a loss on its books while the borrower may still legally owe the money. For investors, rising charge-offs are like seeing more bad checks in a household budget: they signal worsening credit quality, reduce a lender’s profits and capital cushions, and can foreshadow tighter lending and higher loan-loss provisions.

non-recurring gains financial

Non-recurring gains are one-time profits a company records from unusual events — for example selling a building, winning a legal settlement, or selling an investment — that are not part of normal business operations. Investors care because these windfalls can temporarily boost reported earnings and make performance look better than the ongoing business would justify; treating them like a one-off cash bonus helps assess the company’s true, repeatable profit power.

proxy card regulatory

A proxy card is a document that allows shareholders to give someone else the authority to vote on their behalf at a company’s meeting. Think of it as a permission slip that ensures a shareholder’s interests are represented even if they cannot attend in person. For investors, proxy cards are important because they influence company decisions and governance, giving them a way to participate indirectly.

event of default financial

An event of default is a specific breach of a loan or bond agreement—such as missed payments or breaking agreed rules—that gives lenders the legal right to act, for example by demanding immediate repayment, seizing collateral, or accelerating other obligations. For investors, it’s a red flag because it can sharply reduce a company’s ability to operate or raise money, like a car lender repossessing a vehicle after missed payments, and often leads to falling share or bond prices.

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• BIMIZCI is Medallion's (NASDAQ: MFIN) 4th largest institutional stockholder, has been invested for more than five years, and owns 500,250 shares plus $15 million par value of trust preferred securities as of May 27, 2026, representing a total cash investment of $11.4 million
• BIMIZCI has launched the "Restore the Shine" campaign (www.restoretheshine.com) to elect three new, outstanding, independent directors to Medallion's board
• We are asking stockholders of record as of April 13, 2026, to vote the BLUE proxy card now at https://restoretheshine.com/vote
• Co-defendants, Medallion and CEO Andrew Murstein settled a multi-year SEC fraud matter in May 2025, paying $4 million in penalties under permanent federal injunctions
• Five months later, the board promoted Murstein to CEO and paid him $5.7 million, including a $4.6 million bonus
• The market has spoken - Medallion's performance has been declining, with recent performance the worst since 2020 and valuation multiples near all-time lows
• Medallion's total shareholder return is the lowest in its peer group over nearly every measured period, its stock traded at 0.80x tangible book value, and the SBA declared an event of default on $73.5 million of subsidiary debentures
• BIMIZCI has engaged with Medallion over 50 times and submitted two white papers, offering growth capital, strategic ideas, and a long-term locked-up equity investment, and has been ignored or dismissed nearly every time
• BIMIZCI's new rebuttal deck answers Medallion's May 2026 investor presentation claim by claim, using the written record and verifiable data

MINNEAPOLIS--(BUSINESS WIRE)-- It is telling that a management team and board that spent years as defendants in an SEC fraud lawsuit, one driven by Medallion Financial's now-CEO misleading investors, is now accusing BIMIZCI of the very conduct a federal judge attributed to them. The difference is the record. Where the SEC complaint documented Medallion's misstatements, the written record dismantles Medallion's claims about BIMIZCI just as clearly. Medallion tells stockholders the company is performing but the data says otherwise and the market agrees with the data.

View the full rebuttal deck HERE.

Our rebuttal deck lays out the evidence across several areas:

The federal record. Murstein stipulated, for purposes of the Bankruptcy Code, that the SEC's allegations are true. Judge Kaplan found the complaint contained more than sufficient allegations that Murstein and Medallion misled investors by withholding information material to Medallion Bank's fair value, and that Murstein's conduct verged on "deliberate illegal behavior." Co-defendants Medallion and Murstein settled only after their motion to dismiss was almost entirely denied and they faced trial.

Medallion's claims versus reality. We take Medallion's central claims, that it created historic shareholder value, that BIMIZCI is merely a debt holder seeking a buyout, that Medallion returned $68.5 million to shareholders, and answer each with the written record, including complete emails that either contradict Medallion's account or provide full context. Medallion's TSR is the lowest in its own peer group over nearly every period through the filing of our preliminary proxy statement, and its "value creation" narrative starts at the trough of a taxi-medallion collapse of its own making.

Deteriorating financial performance. Consumer charge-offs sit at 15-year highs, the Recreation segment is charging off at rates approaching unsecured credit cards despite being secured lending, reported 2025 earnings relied on $17 million of non-recurring gains on stock sales, and 1Q26 was the weakest quarter since 2020. Medallion tried and failed to refinance $31.25 million in debt before its maturity. The SBA declared an event of default on $73.5 million of subsidiary loans, finding the subsidiary lacked a "qualified management team."

A board that has not held management accountable. Five directors are near or over 80, three of eight are Murstein family, and average director tenure is roughly 18 years. The board gutted the executive clawback policy within two weeks of BIMIZCI urging its use, changing its bylaws to discourage stockholder nominations weeks before Judge Kaplan's ruling, and promoted Andrew Murstein months after his permanent injunctions.

A track record of warnings ignored. BIMIZCI flagged deteriorating consumer credit, commercial non-performer risk, earnings distortion, lowered margins, refinancing risk, and the technology gap as far back as 2023 and 2024. Each warning has since been confirmed by actual events. Medallion's response at the time was that “no change is needed”.

Three nominees who fill the board's gaps. Eric Kelly, John Kiernan and Tim Shanahan bring sitting-CEO experience, technology and AI leadership, bank board service, regulatory credibility, and turnaround and restructuring expertise, capabilities the current board lacks.

We have responded point by point, on the record. We encourage every stockholder to read the full rebuttal.

View the rebuttal deck at https://restoretheshine.com/materials/bimizci-rebuttal-mfin-may-2026-presentation

Stockholders of record as of April 13, 2026 are urged to vote the BLUE proxy card before the annual meeting on June 9, 2026. Voting instructions are at https://restoretheshine.com/vote.

About BIMIZCI Fund LLC

BIMIZCI Fund LLC is managed by ZimCal Asset Management LLC (“ZimCal”). Warnke is managed by BIMIZCI Fund LLC which in turn is managed by ZimCal. ZimCal is managed by Stephen Hodges. ZimCal is an alternative investment firm focused on niche, illiquid and complex credit investment opportunities. ZimCal partners with both healthy and distressed borrowers or issuers and provides customized solutions that meet their unique needs and circumstances. Based on a diluted share count of 23,864,438 shares provided by the Company as of April 29, 2026, BIMIZCI’s percentage ownership stake is 2.10% as of the date of this release.

See https://restoretheshine.com/about for more details.

Important Information

BIMIZCI Fund LLC, Warnke Investments LLC, ZimCal Asset Management LLC, and Stephen Hodges (collectively, “BIMIZCI”) have nominated individuals as nominees to the board of directors of Medallion Financial Corp. (the “Company”) and intend to solicit votes for the election of those individuals, Eric Kelly, John Kiernan, and Timothy Shanahan as members of the Company’s board of directors (the “Nominees”). BIMIZCI will send a definitive proxy statement, proxy card and related proxy materials to stockholders of the Company seeking their support of the Nominees at the Company’s 2026 annual meeting of stockholders. Stockholders are urged to read the definitive proxy statement and proxy card because they contain important information about the Nominees, the Company and related matters. Stockholders may obtain a free copy of the definitive proxy statement and proxy card and other documents filed by BIMIZCI with the Securities and Exchange Commission (“SEC”) at the SEC’s web site at www.sec.gov. Stockholders may also direct a request to Sodali & Co LLC, our proxy solicitor, by calling (800) 662-5200, or banks and brokers can call collect at (203) 658-9400, or by emailing zimcal@info.sodali.com.

Participants in Solicitation

The following persons are participants in the solicitation by BIMIZCI: BIMIZCI Fund LLC, Warnke Investments LLC, ZimCal Asset Management LLC, Stephen Hodges, Eric Kelly, John Kiernan, and Timothy Shanahan. The participants may have interests in the solicitation, including as a result of holding shares of the Company’s common stock. BIMIZCI filed a definitive proxy statement under cover of Schedule 14A on May 8, 2026 (the “Definitive Proxy Statement”). Information regarding the participants and their interests is contained in the Definitive Proxy Statement.

Forward-Looking Statements

Some of the information herein may contain forward-looking statements. All statements contained herein that are not clearly historical in nature or that depend on future events are forward-looking. The words “anticipate,” “believe,” “expect,” “potential,” “could,” “opportunity,” “estimate,” “plan,” and similar expressions are generally intended to identify forward-looking statements. There can be no assurance that any forward-looking statements will prove to be accurate and therefore actual results could differ materially from those set forth in, contemplated by, or underlying these forward-looking statements. In light of the significant uncertainties inherent in forward-looking statements, the inclusion of such information should not be regarded as a representation as to future results or that the objectives and strategic initiatives expressed or implied by such forward-looking statements will be achieved.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260528451125/en/

Media contact: nicole@nh-consult.com

Source: BIMIZCI Fund LLC