AirBoss Provides Update on Strategic Transition
AirBoss of America Corp. (TSX: BOS) (OTCQX: ABSSF) has announced a strategic transition, focusing on its core rubber compounding capabilities and growth opportunities. The company has realigned into two segments: AirBoss Rubber Solutions and AirBoss Manufactured Products.
To assist in this transition, AirBoss has engaged TD Securities Inc. as a financial advisor to explore various strategic alternatives, including acquisitions, divestitures, and financing options, as well as the potential monetization of real estate assets.
While no specific outcomes or timelines are assured, Chairman and Co-CEO Gren Schoch emphasized the commitment to exploring all options to enhance shareholder value and transform AirBoss into a global leader in custom rubber compounding and related industries.
- Realignment into two segments may streamline operations and focus on core competencies.
- Engaging TD Securities Inc. as a financial advisor indicates a proactive approach to exploring growth and value creation options.
- Potential acquisitions and divestitures could enhance business focus and efficiency.
- Exploring the monetization of real estate assets could unlock additional value.
- No assurance of successful transaction completion or outcomes from strategic review.
- Uncertain timeline for the strategic review process may create market uncertainty.
NEWMARKET, Ontario, July 08, 2024 (GLOBE NEWSWIRE) -- AirBoss of America Corp. (TSX: BOS) (OTCQX:ABSSF) (the “Company” or “AirBoss”) today announced an update on its strategic transition, building on its previously announced realignment into two new reportable segments: AirBoss Rubber Solutions and AirBoss Manufactured Products. This transition reflects the Company’s focus on its core rubber compounding capabilities and strategic growth opportunities.
In furthering this transition, AirBoss has retained TD Securities Inc. as its financial advisor to assist the Company with its strategic review of various alternatives to create value for shareholders. The alternatives under review by the Company may include, but are not limited to, acquisitions, divestures and various structural and financing options, including the potential monetization of the Company’s real estate assets. There can be no assurance that this process will result in the successful completion of any such potential transaction, nor any assurance as to the outcome or timing of the Company’s strategic review. There is no timetable for completion of this process and AirBoss does not intend to comment further unless and until it determines that further disclosure is necessary or appropriate.
“The senior leadership team and I are fully committed to the success of AirBoss,” said Gren Schoch, Chairman and Co-CEO of AirBoss. “In this regard, we are committed to exploring all options to create value, with a focus on prioritizing key investments within our core competencies and continuing the transformation of AirBoss into a global market leader in the custom rubber compounding market and the other industries which it serves.”
About AirBoss
AirBoss of America is a diversified developer, manufacturer and provider of survivability solutions, advanced custom rubber compounds and finished rubber products that are designed to outperform in the most challenging environments. Founded in 1989, the company operates through two divisions. AirBoss Rubber Solutions is a North American custom rubber compounder with 500 million turn pounds of annual capacity. AirBoss Manufactured Products is a supplier of anti-vibration and rubber-molded solutions to the North American automotive market and other sectors, and also a global supplier of personal and respiratory protective equipment and technology for the defense, healthcare, medical and first responder communities, through its AirBoss Defense operations. The Company’s shares trade on the TSX under the symbol BOS and on the OTCQX under the symbol ABSSF. Visit www.airboss.com for more information.
AIRBOSS FORWARD LOOKING INFORMATION DISCLAIMER
Certain statements contained or incorporated by reference herein, including those that express management’s expectations or estimates of future developments or AirBoss’ future performance, constitute “forward-looking information” or “forward-looking statements” within the meaning of applicable securities laws, and can generally be identified by words such as “will”, “may”, “could” “expects”, “believes”, “anticipates”, “forecasts”, “plans”, “intends”, “should” or similar expressions. These statements are not historical facts but instead represent management’s expectations, estimates and projections regarding future events and performance.
Statements containing forward-looking information are necessarily based upon a number of opinions, estimates and assumptions that, while considered reasonable by management at the time the statements are made, are inherently subject to significant business, economic and competitive risks, uncertainties and contingencies. AirBoss cautions that such forward-looking information involves known and unknown contingencies, uncertainties and other risks that may cause AirBoss’ actual financial results, performance or achievements to be materially different from its estimated future results, performance or achievements expressed or implied by the forward-looking information. Numerous factors could cause actual results to differ materially from those in the forward-looking information, including without limitation: impact of general economic conditions, notably including its impact on demand for rubber solutions and products; dependence on key customers; global defense budgets, notably in the Company’s target markets, and success of the Company in obtaining new or extended defense contracts; cyclical trends in the tire and automotive, construction, mining and retail industries; sufficient availability of raw materials at economical costs; weather conditions affecting raw materials, production and sales; AirBoss’ ability to maintain existing customers or develop new customers in light of increased competition; AirBoss’ ability to successfully integrate acquisitions of other businesses and/or companies or to realize on the anticipated benefits thereof; AirBoss’ ability to successfully develop and execute effective business strategies, including without limitation the strategic transition described in this press release; changes in accounting policies and methods, including uncertainties associated with critical accounting assumptions and estimates; changes in the value of the Canadian dollar relative to the US dollar; changes in tax laws; current and future litigation; ability to obtain financing on acceptable terms and ability to satisfy the covenants set forth in such financing arrangements; environmental damage and non-compliance with environmental laws and regulations; impact of global health situations; potential product liability and warranty claims and equipment malfunction. There is increased uncertainty associated with future operating assumptions and expectations as compared to prior periods. This list is not exhaustive of the factors that may affect any of AirBoss’ forward-looking information.
All of the forward-looking information in this press release is expressly qualified by these cautionary statements. Investors are cautioned not to put undue reliance on forward-looking information. All subsequent written and oral forward-looking information attributable to AirBoss or persons acting on its behalf are expressly qualified in their entirety by this notice. Forward-looking information contained herein is made as of the date of this Interim Report and, whether as a result of new information, future events or otherwise, AirBoss disclaims any intent or obligation to update publicly the forward-looking information except as required by applicable laws. Risks and uncertainties about AirBoss’ business are more fully discussed under the heading “Risk Factors” in our most recent Annual Information Form and are otherwise disclosed in our filings with securities regulatory authorities which are available on SEDAR+ at www.sedarplus.com.
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