Le Lézard
Classified in: Business
Subjects: TNM, SHA

WYNNEFIELD CAPITAL IMPLORES TECHPRECISION TO GIVE ALL SHAREHOLDERS A VOICE IN VOTAW PRECISION TECHNOLOGIES TRANSACTION


NEW YORK, Jan. 19, 2024 /PRNewswire/ -- Wynnefield Capital and its affiliates, collectively the largest institutional stockholder of TechPrecision Corporation (NASDAQ: TPCS), with a 4.5% beneficial ownership interest, today issued the following public letter to the Company's Board of Directors.

***

January 19, 2024

Wynnefield Capital Demands TechPrecision's Board to Commit That Stockholders Will Vote on the Votaw Transaction

Dear Board of Directors,

Wynnefield Capital and its affiliates (collectively, "Wynnefield") own 393,857 shares of common stock, or 4.5%, of TechPrecision Corporation (NASDAQ: TPCS) ("TechPrecision" or the "Company") as of December 31, 2023. Wynnefield is TechPrecision's largest institutional stockholder, according to Bloomberg.

In its first public letter on December 7, 2023, Wynnefield asked the company to hold a public conference call to explain the proposed acquisition of Votaw Precision Technologies. After receiving no response to this very reasonable request, on December 19, 2023, we publicly questioned why the board was unwilling to disclose the transaction's funding strategy. TechPrecision has given just a generalized response with no material details. Wynnefield remains alarmed by this Board of Directors' disregard for its duties to ALL stockholders, the uncertainty it has created and its contribution to stockholder value destruction.

TechPrecision's board has not earned stockholder trust to approve at its sole discretion, under any circumstance, the proposed Votaw transaction. The claim "the board is unanimous in support of the acquisition" should not be reason to circumvent stockholder interests to weigh in and vote on a proposed transformational acquisition. Just when unfavorable voting results were reported following the September 12, 2023, annual meeting of stockholders, the board was approving the execution of a letter of intent with Votaw knowing that the potential acquisition could cause significant dilution to existing TechPrecision stockholders.

Wynnefield is at a total loss why the company would not engage immediately with its shareholders. We intend to carefully monitor the inevitable dilutive capital raise to ensure equal access opportunity for all shareholders. Wynnefield has operated for over 30 years and never witnessed anything quite this bizarre.

Wynnefield Capital demands accountability given the destruction of stockholder capital. It is time this board and management ADMIT their shortcomings and publicly ENGAGE with stockholders. TPCS stockholder returns are clearly a disaster on an absolute and relative basis.

Source: Bloomberg

No matter how you look at it, TechPrecision's board has caused great harm. The track record is as follows:

Source: Bloomberg data.




































In TechPrecision's press release on June 8, 2023, the board's claim that it is "...limited by the securities laws as to what topics..." can be discussed attempts to obfuscate the many topics that are legally allowed and insults stockholder acumen. TPCS shares plummeted by 14.7% that day. What more proof does the board need that their path remains ill-advised than the dismal stockholder returns presented above?

As Wynnefield attempted to understand this situation better through constructive advice in our first two public letters, we now request further explanations on behalf of ALL stockholders:

TechPrecision stockholders have been patient investors, but recent board actions have been devastating. While Votaw's valuation incorporates just recently improved financial performance, existing TechPrecision stockholders would give up full ownership of RANOR and STADCO just months before their production ramps up and after waiting patiently for years.

IT'S NOT TOO LATE TO EXPLAIN THE PROPOSED VOTAW ACQUISITION ON A PUBLIC CONFERENCE CALL AND TO COMMIT THAT STOCKHOLDERS WILL BE ABLE TO EXERCISE THEIR OWNER VOTE.

Respectfully yours,

Nelson J. Obus, Founder                   Robert D. Straus, Portfolio Manager

***

Media:

Daniel Yunger
Kekst CNC
[email protected]

 


SOURCE Wynnefield Capital


These press releases may also interest you

18 mai 2024
Agway of Cape Cod and Seaside Cannabis Company announce their partnership for the inaugural Clone Fest, set to take place on Sunday, May 19th. The event will be held at both locations, conveniently situated next to each other at 14 and 20 Lots Hollow...

18 mai 2024
Annick Timmer embodies the spirit of a vibrant entrepreneur and serves as the co-founder of The EBH Group, a distinguished firm specializing in ultra-luxury real estate and interior design. Within The EBH Group, Annick assumes a...

18 mai 2024
The Prime Minister, Justin Trudeau, today issued the following statement on Tamil Genocide Remembrance Day: "Fifteen years ago, the quarter-century-long armed conflict in Sri Lanka came to an end. Tens of thousands of Tamils tragically lost their...

18 mai 2024
WHY: Rosen Law Firm, a global investor rights law firm, announces the filing of a class action lawsuit on behalf of purchasers of common stock of UnitedHealth Group Inc. between March 14, 2022 and February 27, 2024, both dates inclusive (the "Class...

18 mai 2024
SPECIALIST business utilities retailer Love Energy Savings is now a BT Authorised Partner for business connectivity products, including broadband. The move will double the UK addressable market of Love Energy Savings to all 5.5 million small and...

18 mai 2024
OKX, a leading crypto exchange by trading volume and a leading Web3 technology company, has issued updates for May 18, 2024. OKX...



News published on and distributed by: