Active Power a manufacturer of flywheel energy storage products and modular infrastructure solutions (MIS), announced today that its board of directors is conducting a review of strategic and financial alternatives to potentially accelerate key growth initiatives and enhance total shareholder value. This process has the goal of identifying the best way to enhance shareholder value. The company has engaged Vinson & Elkins LLP as its legal advisor in connection with its review of strategic and financial alternatives.
"We believe our current share price undervalues the company," said Daryl Dulaney, chairman, board of directors, for Active Power. "Our board and management team have always been committed to acting in the best interests of our shareholders and we are aggressively seeking ways to maximize shareholder value by pursuing strategic and financial alternatives. At the same time, the board is focused on supporting management's efforts for continued operational performance improvements and growth priorities during this review process. We believe that pursuing both of these paths is in the best interests of all of our stakeholders, including our stockholders, and is expected to maximize the value of Active Power."
"Our results of operations have been disappointing as we have seen customers defer delivery of previously placed orders and delay the placement of new orders," said Mark A. Ascolese, president and CEO, for Active Power. "We believe customers may be delaying capital investment spending during this period of economic uncertainty and slow global growth. In addition, while we do not foresee an immediate need for capital, our current share price and the capital markets environment create less than ideal conditions for traditional equity financings that the company had pursued in the past when contemplating its longer term strategic planning.
“This review process will enable us to evaluate various opportunities intended to enhance the company's profitability, including without limitation a sale of the company, new investors, and a transition into other profitable businesses,†Ascolese concluded.
