The hedge fund KVO Capital Management expects to propose an alternate slate of directors at Kana Software's next annual meeting. KVO said that it might engage in discussions with Kana's bank about purchasing the company's outstanding bank debt, and seek to raise financing to pursue the purchase of Kana. KVO stated: "Kana has chosen to ignore the obvious business imperative requiring significant cuts in its operations and instead has determined to continue to pursue its failed 13-year business strategy reliant on equity raises and bank financing." In November 2008, KVO Capital Management urged Kana Software to consider an immediate sale of the company. KVO Capital holds 3,354,343 shares (8.14% of the total outstanding).

Hedge fund KVO Capital Management requested a list of stockholders and related materials from Kana. KVO wants to communicate with other Kana stockholders in connection with a contemplated shareholder proposal for inclusion in Kana's next proxy statement. In November, KVO suggested the company consider an immediate sale of itself. The fund owns 3,011,093 shares (7.31%).

Kana Software (KANA)
Hedge fund KVO Capital Management urged Kana Software to consider immediately selling itself, given its negative working capital, what KVO termed its history of poor management execution, plus reliance on capital raises and debt financing to remain a going concern. KVO Capital urged the company to change its poison-pill antitakeover provisions so that they wouldn't kick in unless a potential acquirer had a 20% stake. The current threshold is 4.9%. KVO Capital currently holds 2,365,205 shares (5.7%).