TPCS - WYNNEFIELD CAPITAL COMPELLED TO SEND OPEN LETTER TO TECHPRECISION BOARD | Benzinga
NEW YORK, Dec. 7, 2023 /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.
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Wynnefield Capital: Demands TechPrecision Hold Public Conference Call to Explain Proposed Acquisition of Votaw Precision Technologies to Stockholders.
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 September 30, 2023. Wynnefield is TechPrecision's largest institutional stockholder, according to Bloomberg.
On Friday, December 1, 2023, Wynnefield's counsel called TechPrecision's outside counsel to express our dismay at TechPrecision's announcement of a definitive agreement to purchase Votaw Precision Technologies, Inc. ("Votaw") without holding a public conference call to explain its rationale for the proposed acquisition or how it would finance this huge acquisition of a company more than twice the size of TechPrecision. This announcement accelerated TPCS's recent share price decline to below $6.00, resulting in an end-of-day 52-week low of $6.06 per-share and a year-to-date decline of 26.8% as of November 30, 2023. Wynnefield has allowed multiple days for TechPrecision to announce a public conference call, but the TechPrecision Board of Directors has remained silent.
The reported Votaw purchase price of $85 million is on a cash and debt free basis, plus an additional $25 million as an earnout payment, resulting in a potential total purchase price of $110 million, excluding significant transaction costs and other unknown quantities. In comparison, TechPrecision's market capitalization totals approximately $53 million. The Company has just $0.1 ...