ENGlobal Engages B. Riley FBR for Review of Strategic Alternatives to Increase Shareholder Value
April 18 2018 - 9:00AM
ENGlobal Corporation (NASDAQ:ENG) (the “Company”), a leading
provider of engineering and automation services, announced today
that its Board of Directors has initiated a review of strategic
alternatives. These alternatives could include strategic mergers,
reverse mergers, the issuance or buyback of public shares, or the
purchase or sale of specific assets, in addition to other potential
actions aimed at increasing shareholder value.
For this purpose, the Company has engaged B.
Riley FBR, Inc., a subsidiary of B. Riley Financial, Inc.
(NASDAQ:RILY) as its exclusive financial advisor to help identify,
analyze, negotiate, and close any potential transaction or series
of transactions.
“We are undertaking this important review of
alternative strategies in order to increase value for our
shareholders while continuing to enhance our extensive range of
project execution services,” said William A. Coskey, P.E., CEO and
Chairman of ENGlobal. “The B. Riley FBR team has demonstrated their
extensive knowledge of our industry and also showcased their deep
understanding of the opportunities available to ENGlobal as a
public platform. We’re pleased to have chosen them as our partner
for this process and are confident we will find a solution that
achieves the Company’s overall objectives."
The Company does not intend to disclose or
comment on developments related to its review unless and until the
Board has approved a specific transaction or otherwise determined
that further disclosure is appropriate. There can be no
assurance that the Board’s strategic review will result in any
transaction, or any assurance as to its outcome or timing.
About ENGlobal
ENGlobal (Nasdaq:ENG) is a provider of
engineering and automation services primarily to the energy sector
throughout the United States and internationally. ENGlobal
operates through two business segments: Automation and
Engineering. ENGlobal's Automation segment provides services
related to the design, integration and implementation of process
distributed control and analyzer systems, advanced automated data
gathering systems and information technology. Within the
Automation segment, ENGlobal's Government Services group provides
engineering, design, installation and operation and maintenance of
various government, public sector and international facilities, and
specializes in the turnkey installation and maintenance of
automation and instrumentation systems for the U.S. Defense
industry worldwide. The Engineering segment provides
multi-disciplined engineering services relating to the development,
management and execution of projects requiring professional
engineering and related project management services. Further
information about the Company and its businesses is available at
www.ENGlobal.com.
Safe Harbor for Forward-Looking Statements
The statements above regarding the Company's
expectations regarding its operations and certain other matters
discussed in this press release may constitute forward-looking
statements within the meaning of the federal securities laws and
are subject to risks and uncertainties including, but not limited
to: (1) our ability to identify, evaluate, and complete any
strategic alternative; (2) the impact of the announcement of the
review of strategic alternatives on our business, including our
financial and operating results, or our employees, suppliers and
customers; (3) the effect of economic downturns and the volatility
and level of oil and natural gas prices; (4) our ability to retain
existing customers and attract new customers; (5) our ability to
accurately estimate the overall risks, revenue or costs on a
contract; (6) the risk of providing services in excess of original
project scope without having an approved change order; (7) our
ability to execute our expansion into the modular solutions market
and to execute our updated business growth strategy to position the
Company as a leading provider of higher value industrial automation
and Industrial Internet of Things services to its customer base;
(8) our ability to attract and retain key professional personnel;
(9) our ability to fund our operations and grow our business
utilizing cash on hand, internally generated funds and other
working capital; (10) our ability to obtain additional financing,
including pursuant to a new credit facility, when needed: (11) our
dependence on one or a few customers; (12) the risks of internal
system failures of our information technology systems, whether
caused by us, third-party service providers, intruders or hackers,
computer viruses, natural disasters, power shortages or terrorist
attacks; (13) our ability to realize revenue projected in our
backlog and our ability to collect accounts receivable and process
accounts payable in a timely manner; (14) the uncertainties related
to the U.S. Government’s budgetary process and their effects on our
long-term U.S. Government contracts; (15) the risk of unexpected
liability claims or poor safety performance; (16) our ability to
identify, consummate and integrate potential acquisitions; (17) our
reliance on third-party subcontractors and equipment manufacturers;
(18) our ability to satisfy the continued listing standards of
NASDAQ with respect to our common stock or to cure any continued
listing standard deficiency with respect thereto; and (19) the
effect of changes in laws and regulations, including U.S. tax laws,
with which the Company must comply and the associated cost of
compliance with such laws and regulations. Actual results and the
timing of certain events could differ materially from those
projected in or contemplated by the forward-looking statements due
to a number of factors detailed from time to time in ENGlobal's
filings with the Securities and Exchange Commission. In addition,
reference is hereby made to cautionary statements set forth in the
Company's most recent reports on Form 10-K and 10-Q, and other SEC
filings.
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CONTACT: Mark A. Hess
(281) 878-1000
ir@ENGlobal.com
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