Schmitt Provides Listing Update Following Acquisition of Ample Hills

Rhea-AI Summary

On July 13, 2020, Schmitt Industries (NASDAQ: SMIT) announced its decision to remain listed on the NASDAQ market following the acquisition of Ample Hills Creamery. The Board of Directors unanimously passed this resolution, driven by the potential risks of delisting. A tender offer extension to July 20, 2020, has been approved to give shareholders more time to decide. CEO Michael Zapata expressed excitement about the acquisition, highlighting its alignment with the company's goal to create shareholder value. A strategic update on Ample Hills will be provided in the coming months.

Positive

• Acquisition of Ample Hills Creamery aligns with Schmitt's strategy to create shareholder value.
• Decision to remain listed on NASDAQ benefits liquidity for shareholders.
• Approved extension of tender offer allows shareholders more time for informed decisions.

Negative

• The potential SEC rule making delisted companies highly illiquid raises concerns.
• Market uncertainties relating to the integration of Ample Hills could impact performance.

PORTLAND, Ore., July 13, 2020 /PRNewswire/ -- Schmitt Industries, Inc. (NASDAQ: SMIT) (the "Company" or "Schmitt") announced today that Schmitt's Board of Directors (the "Board") has unanimously passed a resolution for Schmitt to remain listed on the NASDAQ market.

In conjunction with the acquisition of the assets of Ample Hills Creamery, Inc. and its subsidiaries (collectively, "Ample Hills"), and in consideration for a potential SEC rule that would make delisted companies highly illiquid, the Board has announced that it will remain listed on the NASDAQ markets.

To provide shareholders additional time to make an informed decision on the announced tender offer, the Board has approved an extension of the tender offer to July 20, 2020.

"We are thrilled with the Ample Hills acquisition as it is in line with our goal of identifying unique investment opportunities that will create shareholder value," said Michael Zapata, Schmitt's Chief Executive Officer and Chairman. "The Board has carefully evaluated all options and, although we are shifting our listing intentions, we believe remaining listed is the right decision and will benefit our shareholders in the long run."

Schmitt will provide a strategic update on Ample Hills in the coming months as we work with the team to relaunch and reopen Ample Hills.

About Schmitt Industries, Inc.
Schmitt Industries, Inc., founded in 1987, designs, manufactures and sells high precision test and measurement products, solutions and services through its Acuity® and Xact® product lines. Acuity provides laser and white light sensor distance measurement and dimensional sizing products, and our Xact line provides ultrasonic-based remote tank monitoring products and related monitoring revenues for markets in the Internet of Things environment.

About Ample Hills Acquisition, LLC
Ample Hills Acquisition, LLC, a subsidiary of Schmitt Industries, Inc., was founded in 2020 to purchase the assets of Ample Hills Creamery, Inc. Ample Hills is a beloved, growing ice cream company based in Brooklyn, New York with over nine ice cream scoop locations.

Safe Harbor Statement
This document may contain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors. A complete discussion of the risks and uncertainties that may affect Schmitt's business, including the business of its subsidiary, is included in "Risk Factors" in the Company's most recent Annual Report on Form 10-K as filed by the Company with the Securities and Exchange Commission.

Contact:
Schmitt Industries, Inc.
Michael R. Zapata
Chief Executive Officer
(503) 227-7908

View original content:http://www.prnewswire.com/news-releases/schmitt-provides-listing-update-following-acquisition-of-ample-hills-301091979.html

SOURCE Schmitt Industries, Inc.

FAQ

What acquisition did Schmitt Industries announce on July 13, 2020?

Schmitt Industries announced the acquisition of Ample Hills Creamery.

What is the significance of Schmitt remaining listed on NASDAQ?

Staying listed ensures better liquidity for shareholders amidst SEC regulations on delisted companies.

What is the new deadline for the tender offer related to Schmitt's acquisition?

The tender offer's deadline has been extended to July 20, 2020.

What can shareholders expect in the coming months after the acquisition?

Schmitt plans to provide a strategic update on Ample Hills as they work on its relaunch.