NEW YORK, Aug. 22, 2018 /PRNewswire/ -- Sententia Capital Management, LLC ("Sententia"), one of the largest shareholders of Schmitt Industries, Inc. ("Schmitt" or the "Company") (NASDAQ: SMIT) with ownership of approximately 7.5% of the outstanding shares, today announced that it has delivered a letter to Schmitt's Board of Directors.
Sententia believes Schmitt is comprised of good businesses, strong brands, an attractive long-term profile, and the ability to generate strong free cash flow. However, these features remain hidden under poor leadership and a lack of strategic accountability and insight from the entrenched Company's Board of Directors (the "Board"). The Company remains significantly undervalued as the Board refuses to take appropriate steps to unlock value.
Sententia has made numerous attempts to work cooperatively and privately with the Board over the past two months to effect changes at the Company they believe are necessary to grow, protect and enhance shareholder and stakeholder value, including but not limited to changes to the composition of the Board. Due to the reluctance of the Board to welcome both a large shareholder and an experienced turnaround expert to the Board, and to take other appropriate steps to enhance accountability and transparency for the Board and its committees, Sententia has formally nominated two candidates for election to the Board at Schmitt's 2018 annual meeting.
Please click the following link to access the full letter: SENTENTIA LETTER TO SCHMITT BOARD
ABOUT SENTENTIA CAPITAL
Sententia is a value investing based capital management firm that runs a concentrated, deep value portfolio.
ABOUT FOUNDER: http://investorfieldguide.com/zapata/
CERTAIN INFORMATION CONCERNING THE PARTICIPANTS
Sententia Capital Management, LLC, together with the other participants named herein (collectively, "Sententia"), intends to file a preliminary proxy statement and accompanying proxy card with the Securities and Exchange Commission ("SEC") to be used to solicit votes for the election of its slate of highly-qualified director nominees at the 2018 annual meeting of shareholders of Schmitt Industries, Inc., an Oregon corporation ("SMIT" or the "Company").
SENTENTIA STRONGLY ADVISES ALL SHAREHOLDERS OF THE COMPANY TO READ THE PROXY STATEMENT AND OTHER PROXY MATERIALS AS THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. SUCH PROXY MATERIALS WILL BE AVAILABLE AT NO CHARGE ON THE SEC'S WEB SITE AT HTTP://WWW.SEC.GOV. IN ADDITION, THE PARTICIPANTS IN THIS PROXY SOLICITATION WILL PROVIDE COPIES OF THE PROXY STATEMENT WITHOUT CHARGE, WHEN AVAILABLE, UPON REQUEST.
The participants in the proxy solicitation are anticipated to be Sententia Group, LP, a Delaware limited partnership ("Sententia Group"), Sententia Capital Management, LLC, a Delaware limited liability company ("Sententia Capital"), Michael R. Zapata and Andrew P. Hines.
As of the August 21, 2018, Sententia Group beneficially owns 308,900 shares of common stock, no par value, of the Company (the "Common Stock"), representing approximately 7.7% of the outstanding shares of Common Stock. Sententia Capital, as the general partner of Sententia Group, may be deemed to beneficially own the 308,900 shares of Common Stock owned by Sententia Group. Mr. Zapata, as the Managing Member of Sententia Capital, may be deemed to beneficially own the 308,900 shares of Common Stock owned by Sententia Group. Mr. Hines does not beneficially own any shares of Common Stock.
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SOURCE Sententia Capital Management, LLC