DMC Global responds to Steel Connect's inquiry, affirming commitment to stockholders and ongoing negotiations for acquisition proposals.
Quiver AI Summary
DMC Global Inc. has addressed Steel Connect, Inc.'s recent communication to its stockholders, reaffirming that the DMC Board regularly engages with interested parties, including Steel Connect. After discussions regarding a non-disclosure agreement that began in August 2024, DMC provided Steel Connect with essential information following the signing of the agreement in October 2024. The company is committed to working in good faith with Steel Connect to facilitate a potential acquisition proposal while also evaluating its standalone business strategies. DMC reassures its stockholders that their best interests will guide all decisions. The company has several advisors supporting its strategic and legal needs as it navigates this process.
Potential Positives
- DMC Global is actively engaging with Steel Connect, demonstrating a commitment to transparency and thorough evaluation of strategic alternatives for the benefit of shareholders.
- The board's willingness to provide access and information to Steel Connect indicates confidence in the company's value and opportunities for growth.
- DMC is maintaining its focus on executing its standalone plan, which suggests a strong operational foundation and vision for future success.
- The engagement with reputable financial and legal advisors highlights DMC’s strategic approach in navigating potential acquisition discussions.
Potential Negatives
- The press release suggests a significant level of scrutiny from Steel Connect, indicating potential challenges in DMC's negotiations and strategic positioning.
- DMC's acknowledgment of providing substantial information to Steel Connect raises concerns about the company's transparency and could lead to perceived vulnerabilities in its operations.
- The mention of various advisors may imply that the company is actively seeking external assistance, which could be interpreted as a sign of internal challenges or uncertainty regarding its future direction.
FAQ
What is DMC Global's response to Steel Connect's letter?
DMC Global's board confirmed ongoing discussions with Steel Connect, ensuring equitable access to information for all interested parties.
When did DMC start discussions with Steel Connect?
DMC commenced discussions related to a non-disclosure agreement with Steel Connect in August 2024 and signed the agreement in October 2024.
Who are DMC's advisors in the Steel Connect negotiations?
DMC's advisors include BofA Securities as financial advisor, along with legal advisors from Womble Bond Dickinson and Richards, Layton & Finger.
What type of businesses does DMC Global operate?
DMC Global owns innovative, asset-light manufacturing businesses that specialize in engineered products across various sectors like energy and infrastructure.
How can investors contact DMC Global for inquiries?
Investors can contact Geoff High, Vice President of Investor Relations, at 303-604-3924 for inquiries related to DMC Global.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
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Full Release
BROOMFIELD, Colo., Jan. 27, 2025 (GLOBE NEWSWIRE) -- DMC Global Inc. (Nasdaq: BOOM) (“DMC” or the “Company”) today responded to Steel Connect, Inc.’s (“Steel Connect”) letter to DMC stockholders.
DMC’s board of directors (the “Board”), consistent with its fiduciary duties, regularly engages with third parties, including Steel Connect, that express interest in DMC and its businesses.
Steel Connect has been afforded access to essentially the same information on substantially the same basis as other third parties that have engaged with the Company. After commencing discussions regarding a non-disclosure agreement in August 2024, and upon signing an agreement in October 2024, the Company immediately began providing information to Steel Connect. DMC and its advisors have continued to work diligently and in good faith with Steel Connect to enable it to finally advance and timely submit an actionable proposal to acquire the Company, including providing evidence of its ability to fund.
DMC stockholders can rest assured that the Board is committed to evaluating the Company’s alternatives, including the execution of its standalone plan, and pursuing the path that it believes to be in the best interests of all stockholders.
Advisors
BofA Securities is acting as financial advisor to DMC. Womble Bond Dickinson (US) LLP and Richards, Layton & Finger, P.A. are acting as DMC’s legal advisors, Sodali & Co is acting as its strategic stockholder advisor, and Gagnier Communications LLC is its strategic communications advisor.
About DMC Global
DMC Global is an owner and operator of innovative, asset-light manufacturing businesses that provide unique, highly engineered products and differentiated solutions. DMC’s businesses have established leadership positions in their respective markets and consist of: Arcadia, a leading supplier of architectural building products; DynaEnergetics, which serves the global energy industry; and NobelClad, which addresses the global industrial infrastructure and transportation sectors. Based in Broomfield, Colorado, DMC trades on Nasdaq under the symbol “BOOM.” For more information, visit: HTTP://WWW.DMCGLOBAL.COM.
Safe Harbor Language
This news release contains certain forward-looking statements regarding the Company. All of these statements are based on management’s expectations as well as estimates and assumptions prepared by management that, although they believe to be reasonable, are inherently uncertain. These statements involve risks and uncertainties, including, but not limited to, economic, competitive, governmental and other factors outside of the Company’s control that may cause its business, industry, strategy, financing activities or actual results to differ materially. More information on potential factors that could affect the Company and its financial results is available in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections within the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, and in other documents that the Company has filed with, or furnished to, the U.S. Securities and Exchange Commission. The Company does not undertake any obligation to release public revisions to any forward-looking statement, including, without limitation, to reflect events or circumstances after the date of this news release, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.
CONTACT:
Investors:
Geoff High
Vice President of Investor Relations
303-604-3924
Media:
Riyaz Lalani or Dan Gagnier
Gagnier Communications
416-305-1459
[email protected]