The LGL Group, Inc. Announces Proposed Warrant Dividend
October 27 2020 - 7:30AM
Business Wire
The LGL Group, Inc. (NYSE American: LGL) (the "Company") today
announced it has filed a registration statement on Form S-1 with
the Securities and Exchange Commission, relating to a proposed
dividend of warrants to purchase shares of its common stock. The
Company intends for the warrants to be listed and traded on the
NYSE American separately from the common stock, subject to NYSE
American approval. Pursuant to the proposed warrant dividend, each
holder of the Company's common stock will receive one warrant for
each share of common stock owned and 5 warrants will entitle their
holder to purchase one share of the Company's common stock at an
exercise price of $12.50. The warrants will be "European style
warrants" and will only be exercisable on the earlier of (i) their
expiration date, which will be the fifth anniversary of their
issuance, and (ii) such date that the 30-day volume weighted
average price per share, or VWAP, of the Company's common stock is
greater than or equal to $17.50.
The Company intends to set a record date for the dividend in the
coming weeks.
Marc Gabelli, the Company's chairman, commented, "We are pleased
that with this warrant dividend, shareholders can efficiently
participate in a portion of the Company's future value. This
offering also allows for the Company to further strengthen its
balance sheet while providing additional future flexibility for
value creation. 2020 has been a challenging year for everyone. We
are proud to say the professionals across the Company's global
operations have continued to perform in these difficult times, and
regularly surpass customer expectations. For example, earlier this
year, Mtron's delivery of critical ventilator components to GE
Healthcare underscored the essential nature of (y)our operations
well beyond defense and communications. Due to the complications
associated with government COVID-19 financial support, and the
Company's later determination to return such support, it is
imperative that the Company maintain and strengthen its balance
sheet while also enhancing its growth as an independent critical
component manufacturer for the nation's vital supply chains. The
Board continues to explore growth organically and through
diversified merger and acquisitions and believes the relationship
with the SPAC has enhanced its strategic profile in this context. A
conference call will be held prior to yearend providing an update
on operations. We thank our partners, professional staff, clients,
communities, and shareholders for their ongoing commitment."
No dividend has been declared at this time. This press release
does not constitute an offer to sell or the solicitation of an
offer to buy any securities, nor shall there be any sale of the
securities in any state or other jurisdiction in which such offer,
solicitation or sale would be unlawful prior to the registration or
qualification of such securities under the securities laws of that
state or jurisdiction. Any offer of securities covered by the
registration statement will be made solely by means of a prospectus
included in the registration statement.
About The LGL Group, Inc.
The LGL Group, Inc., through its two principal subsidiaries
MtronPTI and PTF, designs, manufactures and markets
highly-engineered electronic components used to control the
frequency or timing of signals in electronic circuits, and designs
high performance frequency and time reference standards that form
the basis for timing and synchronization in various
applications.
Headquartered in Orlando, Florida, the Company has additional
design and manufacturing facilities in Yankton, South Dakota,
Wakefield, Massachusetts and Noida, India, with local sales offices
in Hong Kong, Sacramento, California and Austin, Texas.
For more information on the Company and its products and
services, contact James Tivy at The LGL Group, Inc., 2525 Shader
Rd., Orlando, Florida 32804, (407) 298-2000, or visit
www.lglgroup.com and www.mtronpti.com.
Caution Concerning Forward Looking Statements
This press release may contain forward-looking statements made
in reliance upon the safe harbor provisions of Section 27A of the
Securities Act of 1933, as amended, and Section 21 E of the
Securities Exchange Act of 1934, as amended. Forward-looking
statements include all statements that do not relate solely to
historical or current facts, and can be identified by the use of
words such as “may,” “will,” “expect,” “project,” “estimate,”
“anticipate,” “plan,” “believe,” “potential,” “should,” “continue”
or the negative versions of those words or other comparable words.
These forward-looking statements are not guarantees of future
actions or performance. These forward-looking statements are based
on information currently available to us and our current plans or
expectations, and are subject to a number of uncertainties and
risks that could significantly affect current plans, anticipated
actions and our future financial condition and results. Certain of
these risks and uncertainties are described in greater detail in
our filings with the Securities and Exchange Commission. We are
under no obligation to (and expressly disclaim any such obligation
to) update or alter our forward-looking statements, whether as a
result of new information, future events or otherwise.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201027005615/en/
James Tivy The LGL Group, Inc. jtivy@lglgroup.com (407)
298-2000
LGL (AMEX:LGL)
Historical Stock Chart
From Mar 2024 to Apr 2024
LGL (AMEX:LGL)
Historical Stock Chart
From Apr 2023 to Apr 2024