Bradley L. Radoff Issues Open Letter to GSE Systems’ Board of Directors to State Opposition to Proposed Sale to Pelican Energy Partners
Bradley L. Radoff, owning approximately 9.9% of GSE Systems, Inc. (NASDAQ: GVP), has sent an open letter to the company's Board of Directors opposing the proposed sale to Pelican Energy Partners. Radoff believes the deal significantly undervalues the company and prioritizes leadership interests over shareholders.
The letter criticizes the Board for allowing liquidity issues to develop, leading to what Radoff calls a 'fire sale' just as the nuclear power industry is experiencing a renaissance. Radoff argues this could be a significant tailwind for GSE's value creation prospects.
Radoff urges the Board to disclose the company's 2025 projections to allow shareholders to accurately evaluate the deal. He criticizes the lack of these projections in the definitive proxy statement as highly unusual, suggesting it prevents shareholders from properly analyzing the company's standalone future versus the current deal.
Bradley L. Radoff, che possiede circa il 9,9% di GSE Systems, Inc. (NASDAQ: GVP), ha inviato una lettera aperta al Consiglio di Amministrazione dell'azienda opponendosi alla vendita proposta a Pelican Energy Partners. Radoff ritiene che l'accordo deprezzi significativamente l'azienda e privilegi gli interessi della dirigenza rispetto a quelli degli azionisti.
La lettera critica il Consiglio per aver permesso lo sviluppo di problemi di liquidità, portando a quello che Radoff definisce un 'liquidazione forzata' proprio mentre l'industria dell'energia nucleare sta vivendo una rinascita. Radoff sostiene che questo potrebbe rappresentare un importante impulso per le prospettive di creazione di valore di GSE.
Radoff esorta il Consiglio a divulgare le proiezioni per il 2025 dell'azienda per consentire agli azionisti di valutare accuratamente l'accordo. Critica l'assenza di queste proiezioni nella dichiarazione di delega definitiva come altamente insolita, suggerendo che impedisca agli azionisti di analizzare correttamente il futuro autonomo dell'azienda rispetto all'accordo attuale.
Bradley L. Radoff, que posee aproximadamente el 9.9% de GSE Systems, Inc. (NASDAQ: GVP), ha enviado una carta abierta a la Junta Directiva de la compañía oponiéndose a la venta propuesta a Pelican Energy Partners. Radoff cree que el acuerdo subestima significativamente la compañía y prioriza los intereses de la dirección sobre los de los accionistas.
La carta critica a la Junta por permitir que se desarrollen problemas de liquidez, lo que lleva a lo que Radoff llama una 'venta de liquidación' justo cuando la industria de la energía nuclear está experimentando un renacimiento. Radoff argumenta que esto podría ser un importante viento a favor para las perspectivas de creación de valor de GSE.
Radoff insta a la Junta a divulgar las proyecciones de la compañía para 2025 para permitir a los accionistas evaluar con precisión el acuerdo. Critica la falta de estas proyecciones en la declaración de poder definitiva como altamente inusual, sugiriendo que impide a los accionistas analizar adecuadamente el futuro autónomo de la empresa frente al acuerdo actual.
브래들리 L. 라도프는 GSE Systems, Inc. (NASDAQ: GVP)의 약 9.9%를 소유하고 있으며, 회사 이사회에 펠리컨 에너지 파트너스에 대한 제안된 판매에 반대하는 공개 서한을 보냈습니다. 라도프는 이번 거래가 회사의 가치를 심각하게 저평가한다고 생각하며, 경영진의 이익을 주주보다 우선시한다고 주장합니다.
서한은 이사회가 유동성 문제를 발전하도록 허용한 것에 대해 비판하며, 이는 라도프가 '긴급 판매'라고 부르는 상황으로 이어지고 있습니다. 그는 이 상황이 GSE의 가치 창출 전망에 상당한 긍정적 영향이 될 수 있다고 주장합니다.
라도프는 이사회에 회사의 2025년도 예측을 공개할 것을 촉구하며, 이를 통해 주주들이 거래를 정확하게 평가할 수 있도록 해야 한다고 주장합니다. 그는 이러한 예측이 최종 위임장 성명서에 결여된 것을 매우 이례적이라고 비판하면서, 이것이 주주들이 회사의 독립적인 미래와 현재 거래를 제대로 분석하는 것을 방해한다고 제안합니다.
Bradley L. Radoff, possédant environ 9,9 % de GSE Systems, Inc. (NASDAQ : GVP), a envoyé une lettre ouverte au Conseil d'administration de l'entreprise s'opposant à la vente proposée à Pelican Energy Partners. Radoff pense que l'accord sous-estime considérablement l'entreprise et privilégie les intérêts de la direction au détriment des actionnaires.
La lettre critique le Conseil pour avoir permis le développement de problèmes de liquidité, conduisant à ce que Radoff appelle une 'vente à prix bradé' juste au moment où l'industrie de l'énergie nucléaire connaît un renouveau. Radoff soutient que cela pourrait constituer un avantage significatif pour les perspectives de création de valeur de GSE.
Radoff exhorte le Conseil à divulguer les prévisions de l'entreprise pour 2025 afin de permettre aux actionnaires d'évaluer précisément l'accord. Il critique l'absence de ces prévisions dans la déclaration d'option définitive comme étant très inhabituelle, suggérant que cela empêche les actionnaires d'analyser correctement l'avenir autonome de l'entreprise par rapport à l'accord actuel.
Bradley L. Radoff, der ungefähr 9,9% von GSE Systems, Inc. (NASDAQ: GVP) besitzt, hat einen offenen Brief an den Vorstand des Unternehmens gesendet, in dem er sich gegen den vorgeschlagenen Verkauf an Pelican Energy Partners ausspricht. Radoff ist der Meinung, dass der Deal das Unternehmen erheblich unterbewertet und die Interessen der Führungskräfte über die der Aktionäre stellt.
Der Brief kritisiert den Vorstand dafür, dass er Liquiditätsprobleme hat entstehen lassen, was zu dem führt, was Radoff als 'Feuerverkauf' bezeichnet, genau zu dem Zeitpunkt, an dem die Kernkraftbranche eine Renaissance erlebt. Radoff argumentiert, dass dies einen bedeutenden Rückenwind für die Wertschöpfungsperspektiven von GSE darstellen könnte.
Radoff fordert den Vorstand auf, die Unternehmensprognosen für 2025 offenzulegen, damit die Aktionäre den Deal genau bewerten können. Er kritisiert das Fehlen dieser Prognosen in der endgültigen Vollmachtserklärung als äußerst ungewöhnlich und schlägt vor, dass es den Aktionären den ordnungsgemäßen Vergleich der zukünftigen Entwicklung des Unternehmens mit dem aktuellen Deal verwehrt.
- Potential for enhanced value creation due to nuclear power industry renaissance
- Large shareholder actively engaging to potentially improve deal terms or outcomes for all shareholders
- Proposed sale to Pelican Energy Partners potentially undervalues the company
- Board's apparent failure in addressing liquidity issues
- Lack of transparency regarding 2025 projections
- Board's public company experience and minimal share ownership
- Concerns about prioritizing leadership interests over shareholders
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Urges the Board to Consider Shareholders’ Best Interests and Disclose the Company’s 2025 Projections so Investors Can Accurately Value the Company Against the Deal Price
***
GSE Systems, Inc.
6940 Columbia Gateway Drive, Suite 470
Attention: The Board of Directors
October 18, 2024
Members of the Board,
I am one of GSE’s largest shareholders, with an approximately
The Board, which collectively has limited public company experience and de minimis share ownership, appears to have allowed the Company to develop liquidity issues that have become the basis for what is seemingly a fire sale. Now, with this deal, the Board is seemingly doubling down on its missteps by giving up on the Company right as the nuclear power industry is entering a renaissance that should be a significant tailwind for GSE and its prospects for enhanced value creation.
Despite GSE’s apparent runway for improved financial performance, you have refused to provide a view on the business for 2025. As a result, shareholders are unable to appropriately analyze the Company’s prospects and evaluate a standalone future relative to the current deal. The Board’s contention that it cannot provide projections because management’s forecasts have historically been unreliable simply serves as an acknowledgment of your failures when it comes to governing the business and overseeing the executive leadership you put in place.
With respect to your decision to deprive shareholders of relevant information, it is highly unusual that the Company’s definitive proxy statement for the merger did not contain forward-looking business projections. I appear to be one of the many shareholders who are disappointed with this insufficient disclosure. The Company’s Form-8-K filed on October 8th, 2024 – just two weeks prior to the shareholder vote – was purportedly only put out in response to “demand letters alleging similar deficiencies and/or omissions regarding the disclosures made in the Preliminary Proxy Statement or the Definitive Proxy Statement.”1
In the October 8th 8-K, GSE provided a mere glimpse of very encouraging and positive projections that implied more than
While the Company’s legal counsel and bankers – who stand to make millions if the deal goes through – may have signed off on the disclosures to this point, the Board should know that this deal fails the smell test. Nothing in the merger agreement prevents you from providing more information and transparency to shareholders. I believe your decision to effectively keep GSE shareholders in the dark will define your directorship at GSE and be a black mark for any of you who intend to pursue other director opportunities. Shareholders have long memories.
While you have trumpeted Institutional Shareholder Services’ recent report as an endorsement, I don't believe shareholders should give it any credence. The report neglects to mention the lack of initial projections, the magnitude of the late projections and the recent trading activity indicating that shareholders believe there is more value than is being offered by Pelican. In fact, approximately
In closing, I believe an independent GSE has significant upside potential. The Board failed to provide projections prior to the record date and then reluctantly offered limited disclosure just two weeks prior to the shareholder meeting. This set of circumstances, combined with a comical fairness opinion and egregious transaction expenses, are very troubling. I once again demand normal course forward projections so that shareholders, who are the owners of the business, can fairly evaluate the Pelican transaction.
Sincerely,
Bradley L. Radoff
***
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1 The Company’s Form 8-K dated October 8, 2024.
THIS IS NOT A SOLICITATION OF AUTHORITY TO VOTE YOUR PROXY. DO NOT SEND US YOUR PROXY CARD. MR. RADOFF IS NOT ASKING FOR YOUR PROXY CARD AND WILL NOT ACCEPT PROXY CARDS IF SENT. MR. RADOFF IS NOT ABLE TO VOTE YOUR PROXY, NOR DOES THIS COMMUNICATION CONTEMPLATE SUCH AN EVENT.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241018616185/en/
Greg Lempel
greg@fondrenlp.com
Source: On Behalf of Bradley L. Radoff
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