Tecnoglass Disputes Allegations in Short Seller Report and Remains Committed to Transparency, Ethical Conduct, and Compliance with All Applicable Laws

Rhea-AI Summary

Tecnoglass (NASDAQ: TGLS) announced the formation of a Special Committee of independent directors to investigate issues raised in a recent short seller report from December 9, 2021. The committee, supported by Covington & Burling LLP and a major accounting firm, aims to address the allegations while asserting the company’s commitment to ethical practices. Tecnoglass also reaffirmed its optimistic outlook for full-year 2021, projecting revenues between $490 million to $495 million and adjusted EBITDA of $147 million to $150 million, bolstered by strong cash flow of approximately $100 million year-to-date through November 2021.

Positive

• Projected revenue between $490 million to $495 million for full year 2021.
• Adjusted EBITDA forecasted to be in the range of $147 million to $150 million.
• Strong cash flow of approximately $100 million year-to-date through November 2021.

Negative

• Ongoing scrutiny due to allegations in the short seller report from December 9, 2021.
• Uncertainty regarding the timing and outcome of the Special Committee's analysis.

- Company’s Board of Directors Forms Special Committee of Independent Directors to Analyze Issues Raised in Report with Assistance of Leading International Law Firm -

- Company Reaffirms Recently Increased Full Year 2021 Growth Outlook -

BARRANQUILLA, Colombia , Dec. 17, 2021 (GLOBE NEWSWIRE) -- Tecnoglass, Inc. (NASDAQ: TGLS) (“Tecnoglass” or the “Company”), a leading manufacturer of architectural glass, windows, and associated aluminum products serving the global residential and commercial end markets, today announced that the Company’s Board of Directors (the “Board”) has formed a Special Committee of independent directors (the “Special Committee”). The Special Committee has retained Covington & Burling LLP, which will be supported by a leading global accounting firm, to assist the Special Committee in analyzing the recent short seller report issued on December 9, 2021.

Tecnoglass disputes the allegations in the recent short seller report, and the Company is committed to doing business in the most ethical and transparent manner and complying with all applicable laws. Although the Special Committee is currently unable to predict the timing or outcome of the analysis, the Company is diligently providing support to Covington as it works to complete the analysis as soon as possible.

The Company reaffirmed the Company’s increased financial outlook it disclosed on December 9, 2021 for full year 2021. The Company remains on pace to deliver another year of record cash flow with cash flow from operations at approximately $100 million year to date through November 2021. Based on the financial performance through November 2021, the Company expects revenue to be in the range of $490 million to $495 million and Adjusted EBITDA to be in the range of $147 million to $150 million.

About Tecnoglass

Tecnoglass Inc. is a leading producer of architectural glass, windows, and associated aluminum products serving the multi-family, single-family and commercial end markets. Tecnoglass is the second largest glass fabricator serving the U.S. and the #1 architectural glass transformation company in Latin America. Located in Barranquilla, Colombia, the Company’s 2.7 million square foot, vertically-integrated and state-of-the-art manufacturing complex provides efficient access to over 1,000 global customers, with the U.S. accounting for more than 90% of revenues. Tecnoglass' tailored, high-end products are found on some of the world's most distinctive properties, including One Thousand Museum (Miami), Paramount (Miami), Salesforce Tower (San Francisco), Via 57 West (NY), Hub50House (Boston), Aeropuerto Internacional El Dorado (Bogotá), One Plaza (Medellín), Pabellon de Cristal (Barranquilla). For more information, please visit www.tecnoglass.com or view our corporate video at https://vimeo.com/134429998.

Forward Looking Statements

This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding future financial performance, future growth and future acquisitions. These statements are based on Tecnoglass’ current expectations or beliefs and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements herein due to changes in economic, business, competitive and/or regulatory factors, and other risks and uncertainties affecting the operation of Tecnoglass’ business. These risks, uncertainties and contingencies are indicated from time to time in Tecnoglass’ filings with the Securities and Exchange Commission. The information set forth herein should be read in light of such risks. Further, investors should keep in mind that Tecnoglass’ financial results in any particular period may not be indicative of future results. Tecnoglass is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of new information, future events and changes in assumptions or otherwise, except as required by law.

Investor Relations:                

Santiago Giraldo
CFO
305-503-9062
investorrelations@tecnoglass.com

FAQ

What is the recent decision by Tecnoglass regarding the short seller report?

Tecnoglass has formed a Special Committee of independent directors to analyze the allegations in a recent short seller report.

What is Tecnoglass's revenue outlook for 2021?

Tecnoglass projects its revenue to be between $490 million to $495 million for the full year 2021.

How much cash flow has Tecnoglass reported year-to-date?

Tecnoglass reported approximately $100 million in cash flow from operations year-to-date through November 2021.

What is the role of Covington & Burling LLP in Tecnoglass's current situation?

Covington & Burling LLP has been retained to assist the Special Committee in analyzing the short seller report.

What impact does the Special Committee have on Tecnoglass shareholders?

The ongoing analysis by the Special Committee introduces uncertainty concerning the company's operations and governance, which could impact shareholder confidence.