GSE Solutions Encourages Stockholders to VOTE FOR the AMENDED Merger
GSE Solutions (Nasdaq: GVP) is urging stockholders to vote in favor of its amended merger with an affiliate of Pelican Energy Partners. The revised deal offers $4.60 per share in cash, representing a 69% premium over the closing price on August 7, 2024. The GSE Board unanimously recommends the merger, citing several reasons:
1. Significant premium over recent stock prices
2. Arms-length transaction maximizing stockholder value
3. alternatives due to industry challenges
4. Ongoing financial concerns and going concern issues
5. Competitive disadvantages in obtaining performance bonds
6. Failure to meet internal goals and projections
7. High public-company costs relative to revenue
8. Cash flow constraints and vendor payment issues
The company emphasizes the merger as the best path forward given its financial challenges and market conditions.
GSE Solutions (Nasdaq: GVP) sta esortando gli azionisti a votare a favore della sua fusione modificata con un'affiliata di Pelican Energy Partners. L'accordo rivisto offre $4.60 per azione in contante, che rappresenta un 69% di premio rispetto al prezzo di chiusura del 7 agosto 2024. Il Consiglio di Amministrazione di GSE raccomanda all'unanimità la fusione, citando diversi motivi:
1. Premio significativo rispetto ai recenti prezzi delle azioni
2. Transazione a condizioni di mercato che massimizza il valore per gli azionisti
3. Alternative limitate a causa delle sfide del settore
4. Preoccupazioni finanziarie in corso e problemi di continuità aziendale
5. Svantaggi competitivi nell'ottenere obbligazioni di prestazione
6. Fallimento nel raggiungere obiettivi e proiezioni interne
7. Elevati costi per le società quotate rispetto ai ricavi
8. Vincoli di liquidità e problemi di pagamento ai fornitori
La società sottolinea che la fusione rappresenta il miglior percorso da seguire date le sue sfide finanziarie e le condizioni di mercato.
GSE Solutions (Nasdaq: GVP) está instando a los accionistas a votar a favor de su fusión enmendada con una afiliada de Pelican Energy Partners. El acuerdo revisado ofrece $4.60 por acción en efectivo, lo que representa un premio del 69% sobre el precio de cierre del 7 de agosto de 2024. La Junta de GSE recomienda unánimemente la fusión, citando varias razones:
1. Premio significativo sobre los precios recientes de las acciones
2. Transacción a distancia que maximiza el valor para los accionistas
3. Alternativas limitadas debido a los desafíos de la industria
4. Preocupaciones financieras en curso y problemas de continuidad
5. Desventajas competitivas para obtener bonos de rendimiento
6. Incumplimiento de objetivos y proyecciones internas
7. Altos costos para empresas públicas en relación con los ingresos
8. Restricciones de flujo de efectivo y problemas de pago a proveedores
La empresa enfatiza que la fusión es el mejor camino a seguir dadas sus dificultades financieras y condiciones del mercado.
GSE 솔루션(Nasdaq: GVP)은 주주들에게 Pelican Energy Partners의 계열사와의 수정된 합병에 찬성 투표할 것을 촉구하고 있습니다. 수정된 거래는 주당 $4.60 현금을 제공하며, 이는 2024년 8월 7일 종가에 비해 69% 프리미엄을 나타냅니다. GSE 이사회는 여러 가지 이유를 들어 합병을 전원 만장일치로 추천합니다:
1. 최근 주가 대비 상당한 프리미엄
2. 주주 가치를 극대화하는 공정 거래
3. 업계 도전 과제로 인한 대안 부족
4. 지속적인 재정적 우려 및 계속 기업 문제
5. 성과 보증금 획득에 있어 경쟁적 불이익
6. 내부 목표 및 전망 달성 실패
7. 수익에 비해 높은 공공 기업 비용
8. 현금 흐름 제약 및 공급업체 지급 문제
회사는 재정적 문제와 시장 조건을 고려할 때 합병이 최선의 경로라고 강조합니다.
GSE Solutions (Nasdaq: GVP) exhorte les actionnaires à voter en faveur de sa fusion modifiée avec une filiale de Pelican Energy Partners. L'accord révisé propose 4,60 $ par action en espèces, représentant une prime de 69% par rapport au prix de clôture du 7 août 2024. Le conseil d'administration de GSE recommande à l'unanimité la fusion pour plusieurs raisons :
1. Prime significative par rapport aux prix récents des actions
2. Transaction à distance maximisant la valeur pour les actionnaires
3. Alternatives limitées en raison des défis de l'industrie
4. Préoccupations financières en cours et problèmes de continuité
5. Désavantages concurrentiels pour obtenir des obligations de performance
6. Échec à atteindre des objectifs et des prévisions internes
7. Coûts élevés pour les entreprises publiques par rapport aux revenus
8. Contraintes de flux de trésorerie et problèmes de paiement aux fournisseurs
L'entreprise souligne que la fusion représente le meilleur chemin à suivre compte tenu de ses défis financiers et des conditions du marché.
GSE Solutions (Nasdaq: GVP) fordert die Aktionäre auf, für die geänderte Fusion mit einem Tochterunternehmen von Pelican Energy Partners zu stimmen. Der überarbeitete Deal bietet 4,60 $ pro Aktie in bar, was einen 69% Aufschlag gegenüber dem Schlusskurs vom 7. August 2024 darstellt. Der Vorstand von GSE empfiehlt einstimmig die Fusion aus mehreren Gründen:
1. Bedeutender Aufschlag gegenüber den jüngsten Aktienkursen
2. Transaktion zu marktgerechten Bedingungen, die den Wert für die Aktionäre maximiert
3. Eingeschränkte Alternativen aufgrund von Branchenherausforderungen
4. Anhaltende finanzielle Bedenken und Probleme mit der Unternehmensfortführung
5. Wettbewerbliche Nachteile bei der Beschaffung von Leistungsgarantien
6. Nichterfüllung interner Ziele und Prognosen
7. Hohe Kosten für öffentliche Unternehmen im Verhältnis zu den Einnahmen
8. Cashflow-Einschränkungen und Zahlungsprobleme mit Anbietern
Das Unternehmen hebt hervor, dass die Fusion der beste Weg nach vorne ist, angesichts seiner finanziellen Schwierigkeiten und der Marktbedingungen.
- Increased merger consideration to $4.60 per share in cash
- 69% premium over the closing price as of August 7, 2024
- 29% premium over the 30-day volume weighted average price as of August 7, 2024
- Arms-length transaction with independent third-party buyer
- Substantial doubt about the company's ability to continue as a going concern
- Inability to obtain performance bonds due to financial position
- Failure to meet internal goals and projections in FY 2022 and FY 2023
- Zero dollars in bonuses paid to senior management due to financial performance
- High public-company costs at 4.66% of revenue in 2023
- Cash flow constraints requiring cash collateralization of project-based letters of credit
- Anticipated requirement for prepayment from suppliers and vendors due to financial status
Insights
The proposed merger between GSE Solutions and Pelican Energy Partners represents a significant development for GSE stockholders. The
GSE's financial position appears precarious, with management expressing "substantial doubt" about the company's ability to continue as a going concern for several years. The company's inability to obtain performance bonds, high public company costs (
While the nuclear industry may have long-term potential, GSE's immediate outlook is challenging. The board's inability to find superior alternatives after two extensive auction processes suggests this may be the best available option for shareholders. Investors should carefully weigh the immediate premium against the risks of rejecting the deal and potentially facing further financial deterioration.
The merger proposal presents several legal considerations for GSE Solutions shareholders. The board's unanimous approval and the arm's length nature of the transaction with an independent third party (Pelican Energy Partners) demonstrate adherence to fiduciary duties. The extensive auction processes conducted in 2019-2020 and 2023, involving hundreds of potential bidders, provide strong evidence that the board has thoroughly explored alternatives to maximize shareholder value.
However, the company's ongoing financial struggles, including the "substantial doubt" about its ability to continue as a going concern, raise potential liability concerns. If shareholders reject the merger, the board's disclosure of these risks could serve as a shield against future claims of withholding material information.
The amended merger agreement increasing the consideration to
Reasons for VOTING FOR THE MERGER include, but are not limited to:
- the fact that the per share price represents a premium of approximately
69% over the closing price of GSE common stock as of August 7, 2024, the last trading day on NASDAQ prior to public announcement of the merger agreement; - the fact that the per share price represents a premium of approximately
29% over the average 30-day volume weighted average price per share as of August 7, 2024, the last trading day on NASDAQ prior to public announcement of the merger agreement; and - Pelican is an independent third party buyer and the merger is an arms-length transaction that will maximize value for stockholders.
In continuing to recommend the Merger, the GSE Board of Directors also considered available alternatives and found those options inferior because, among other reasons:
- while the tailwinds for nuclear industry are apparent, capital spend within the industry is moving at very slow pace;
- Management has expressed that substantial doubt exists for the Company to continue as a going concern at fiscal year-end 2023, 2022, 2020 and 2019 and, IF THE MERGER IS NOT APPROVED, THE BOARD OF DIRECTORS BELIEVES THAT SUBSTANTIAL DOUBT WILL CONTINUE TO EXIST FOR GSE TO CONTINUE AS A GOING CONCERN;
- GSE cannot obtain performance bonds given its financial position and, therefore, is at a competitive disadvantage to its competitors;
- The Merger Agreement with Pelican followed two robust auction processes where hundreds of participants were involved – notably, not a single one of those participants from the 2019-2020 auction process (286 potential bidders and 143 parties received confidential information) or the 2023 auction process (116 potential bidders and 60 parties received confidential information) has reemerged with a competing Takeover Proposal;
- GSE has failed to meet internal goals and projections in each of FY 2022 and FY 2023 resulting in the payment of ZERO dollars in bonuses to senior management;
- To conserve cash, GSE's prior Chief Executive Officer agreed to receive nearly
90% of his compensation from June 2023 to May 2024 in shares of stock; - GSE negotiated an interest-only, one-year term loan from an affiliate of Pelican Energy Partners because (i) absent prepayment of the prior convertible promissory note, GSE anticipated significant dilution of its stockholders through the merger date; and (ii) GSE lacked the ability to make cash payments to the note holder to support the debt during that time;
- Despite lean staffing, GSE incurs annual public-company costs in excess of
$2,100,000 4.66% of revenue in 2023 alone; - GSE is required to cash collateralize project-based letters of credit, resulting in restricted cash in excess of
one million dollars ; and - GSE anticipates that material suppliers and vendors will require prepayment for goods and services in light of GSE's going concern status and payment history.
Vote Your Shares Today
If you have any questions, or need assistance in voting
your shares, please call our proxy solicitor,
INNISFREE M&A INCORPORATED
TOLL-FREE, at (877) 750-5837 (from the
or at +1 (412) 232-3651 (from other countries)
ABOUT GSE SOLUTIONS
Proven by more than 50 years of experience in the nuclear power industry, GSE knows what it takes to help customers deliver carbon-free electricity safely and reliably. Today, GSE Solutions leverages top talent, expertise, and technology to help energy facilities achieve next-level power plant performance. GSE's advanced Engineering offer highly specialized training, engineering design, program compliance, and simulation to that reduce risk and optimize plant operations. With more than 1,100 installations and hundreds of customers in over 50 countries, GSE delivers operational excellence. www.gses.com
Additional Information About the Proposed Transaction and Where to Find It
More detailed and updated information regarding the merger is set forth in the Definitive Proxy Statement filed with the SEC and mailed to stockholders on September 16, 2024. GSE stockholders can obtain a free copy of the Definitive Proxy Statement, as well as other filings containing information about GSE, without charge, at the SEC's website (www.sec.gov). Copies of the Definitive Proxy Statement and the filings with the SEC incorporated by reference therein can also be obtained, without charge, by directing a request to GSE's Corporate Secretary at 6940 Columbia Gateway Drive, Suite 470,
BEFORE MAKING ANY VOTING DECISION, GSE STOCKHOLDERS ARE URGED TO READ ALL RELEVANT DOCUMENTS FILED OR TO BE FILED WITH THE SEC, INCLUDING THE DEFINITIVE PROXY STATEMENT, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED MERGER.
Participants in the Solicitation of Proxies
The Company and certain of its directors, executive officers and employees may be deemed to be participants in the solicitation of proxies in respect of the proposed merger. Information regarding GSE's directors and executive officers is available in GSE's definitive proxy statement for its 2024 annual meeting of stockholders, which was filed with the SEC on May 24, 2024, the Company's Annual Report on Form 10-K/A for the year ended December 31, 2023, which was filed with the SEC on April 2, 2024 (as amended on April 2, 2024, and April 29, 2024), and in other documents filed by the Company with the SEC. These documents can be obtained free of charge from the sources indicated above. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the Definitive Proxy Statement and other relevant materials to be filed with the SEC in connection with the proposed transaction when they become available. Free copies of the Definitive Proxy Statement and such other materials may be obtained as described in the preceding paragraph. Investors should read the Definitive Proxy Statement carefully before making any voting or investment decisions.
Forward-Looking Statements and Information
This communication contains "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, or the Exchange Act. These statements are often identified by the use of words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "project," "will," "would" or the negative or plural of these words or similar expressions or variations. Forward-looking statements are made based upon management's current expectations and beliefs and are not guarantees of future performance. Such forward-looking statements are subject to a number of risks, uncertainties, assumptions and other factors that could cause actual results and the timing of certain events to differ materially from future results expressed or implied by the forward-looking statements. These factors include, among others: completion of the Merger is subject to various risks and uncertainties related to, among other things, its terms, timing, structure, benefits, costs and completion; the occurrence of any event, change or other circumstances that could give rise to the termination of the Merger Agreement; risks related to the disruption of management's attention from GSE's ongoing business operations due to the Merger; and other risks set forth under the heading "Risk Factors," of our Annual Report on Form 10-K for the year ended December 31, 2023 and in our subsequent filings with the SEC. You should not rely upon forward-looking statements as predictions of future events. Furthermore, such forward-looking statements speak only as of the date of this report. Our actual results could differ materially from the results described in or implied by such forward looking statements. Forward-looking statements speak only as of the date hereof, and, except as required by law, we undertake no obligation to update or revise these forward-looking statements.
Media Contact
Sunny DeMattio
GSE Solutions
Director of Marketing & Communications
sunny.demattio@gses.com
Direct: +1 410.970.7931
Investor Contact
Adam Lowensteiner
Vice President
Lytham Partners
gvp@lythampartners.com
Direct: +1 646.829.9702
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SOURCE GSE Systems, Inc.
FAQ
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