Evercel, Inc. Announces Resignation of Daniel Allen as CEO

Rhea-AI Summary

Evercel, Inc. (OTC Pink: EVRC) announced the resignation of CEO Daniel Allen, effective December 17, 2021. Although no longer CEO, Allen intends to remain on the Board of Directors. The Board is initiating discussions to appoint new leadership. Concurrently, Corona Park Investment Partners, an affiliate of Allen, filed a lawsuit against Evercel to enforce a Put Option under a Stock Pledge Agreement, claiming Evercel has failed to comply. Evercel disputes these claims and aims to defend itself rigorously. The Special Committee will also investigate the Put Option and related transactions.

Positive

• Potential for fresh leadership perspectives with new CEO appointment.

Negative

• Ongoing lawsuit from Corona Park may threaten operational stability.
• Leadership change could lead to uncertainty in company strategy.

MIAMI, Dec. 22, 2021 (GLOBE NEWSWIRE) -- Evercel, Inc. (OTC Pink: EVRC) (“Evercel,” or the “Company”) today announced that Daniel Allen has provided his resignation as the Chief Executive Officer of Evercel, effective December 17, 2021. Although Mr. Allen will no longer serve as the Chief Executive Officer of Evercel, Mr. Allen has stated his intention to continue to serve on the Company’s Board of Directors (the “Board”). In light of Mr. Allen’s resignation, the Board has commenced planning discussions to appoint new leadership. In the interim, a Special Committee of the Board (the “Special Committee”), which was originally formed to review various Evercel matters and disclosures, will manage the day-to-day operations of Evercel.

Also on December 17, 2021, Corona Park Investment Partners, LLC (“Corona Park”), an affiliate of Mr. Allen, filed a complaint against Evercel in the Court of Chancery of the State of Delaware seeking to enforce Corona Park’s purported rights under a Stock Pledge Agreement with Evercel. Specifically, Corona Park alleges that pursuant to the Stock Pledge Agreement, it has obtained a put option to have Evercel purchase all, or some, of Corona Park’s 17% equity interest in Evercel at fair market value (the “Put Option”). Corona Park claims that it has validly exercised the Put Option and Evercel has failed to honor its exercise in breach of the Stock Pledge Agreement by repudiating the Put Option provisions of the Stock Pledge Agreement. Based on information received and investigated to date, Evercel strongly disagrees with the allegations in the foregoing complaint, believes the complaint is without merit and intends to vigorously defend against it.

The Special Committee intends to continue its investigation into the enforceability of the Put Option and other Corona Park related party transactions. Evercel will endeavor to provide additional updates on its search for new leadership and the Put Option, as such updates become available.

About Evercel, Inc.

Evercel, Inc. is a holding company that brings an entrepreneurial approach to acquiring and managing businesses through a hands-on, data-driven approach as it partners with strong management teams to drive long term results. Evercel’s current portfolio companies include ZAGG and Current Technologies.

Evercel is currently exempted from the SEC’s periodic reporting requirements, and voluntarily reports financial and other information from time to time. Evercel may change its reporting practices at any time, in its discretion and without notice. www.evercel.com

Cautionary Statement Regarding Forward-Looking Information

In addition to the historical information contained herein, this press release contains certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that reflect the Company's current expectations and projections about its future results, performance, prospects and opportunities. The Company has tried to identify these forward-looking statements by using words such as "may," "should," "expect," "hope," "anticipate," "believe," "intend," "plan," "estimate" and similar expressions. These forward-looking statements are based on information currently available to the Company and are subject to a number of risks, uncertainties and other factors that could cause its actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. No assurance can be given that the actual results will be consistent with the forward-looking statements. Except as otherwise required by Federal securities laws, the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason.

FAQ

What is the impact of Daniel Allen's resignation on Evercel (EVRC)?

Daniel Allen's resignation as CEO could lead to a fresh perspective in leadership, but it also introduces uncertainty during the search for his replacement.

Why did Corona Park file a complaint against Evercel (EVRC)?

Corona Park claims that Evercel failed to honor a Put Option under a Stock Pledge Agreement, seeking to enforce its rights regarding its equity interest.

What measures is Evercel (EVRC) taking in response to the lawsuit from Corona Park?

Evercel intends to vigorously defend against the allegations made by Corona Park and is analyzing the enforceability of the Put Option.