Prison Realty Trust Inc. (PZN) said Monday morning that it has terminated Doc Crant's positions as chief executive of the company and of its primary tenant, Corrections Corporation of America.
It had previously announced that the co-founder of the company would leave once the company was restructured and a new leader found. A released statement Monday from Prison Realty Chairman Tom Beasley said that "our search for a new CEO has narrowed and we are optimistic that an announcement can be made expeditiously."
Mr. Crants will remain on the boards of two other prison-management firms affiliated with the company -- Prison Management Services Inc. and Juvenile and Jail Facility Management Services Inc."He will remain on the boards at the request of the voting shareholders of these companies, in order to retain his experience in the private corrections industry,'' Mr. Beasley said.
Shareholders will vote on a major restructuring plan at a September 12 meeting. Proxies will be mailed August 1.
The plan includes merging Prison Realty and CCA; changing the tax status of the company from a real estate investment trust to a regular C corporation; and replacing senior management.
After the restructuring, "the company will be able to retain earnings to fund future growth opportunities and it will eliminate potential conflicts of interest that have harmed our credibility in the public markets," the statement said.
Prison Realty shares settled Friday at $2.31. Their 52-week range is $2-$14.19.