Novation Companies, Inc. announced that it has entered into an agreement with Lone Star Value Management, LLC and its affiliates. Novation has agreed to expand the size of the company's Board of Directors from six to eight directors and to appoint Jeffrey E. Eberwein and Robert G. Pearse, effective immediately, to fill the vacancies on the Board as independent directors. Jeffrey E. Eberwein has over 20 years of Wall Street experience and is the founder and CEO of Lone Star Value, an investment firm.

Prior to that, Mr. Eberwein served as a portfolio manager at Soros Fund Management and Viking Global Investors. Robert G. Pearse currently serves as a Managing Partner at Yucatan Rock Ventures. Mr. Pearse serves as a director for Aviat Networks, Inc. and as a member of its Compensation Committee and Nominating &Governance Committee since 2015.