Concerned Investor Group Calls for Changes at Terran Orbital
Concerned Investor Group Calls for Changes at Terran Orbital
Believes Urgent Board and Management Restructuring is Required
A group of concerned investors (the “Concerned Investor Group”) in Terran Orbital Corp. ... comprised of Sophis Investments LLC, Roark’s Drift LLC, and Tyvak Nano-Satellite Systems’ Co-Founders, Jordi Puig-Suari, Roland Coelho and Austin Williams ... has sent a letter to Terran’s Board of Directors (the “Board”) detailing the path required for Terran to regain market credibility and restore stockholder value.
"Terran must regain market credibility and more favorable access to capital, which we believe can only be achieved through a meaningful change in leadership and greater operating efficiency."
Excerpt from Concerned Investor Group letter
The Concerned Investor Group, together with certain affiliates, beneficially owns 16,581,465 shares of common stock of the Company, representing approximately 8.4% of the shares outstanding. Despite Terran’s significant competitive advantages, the Company is now meaningfully undercapitalized and operating from a position of weakness due to leadership missteps, lack of internal controls, poor corporate governance, and a loss of public market confidence. Moreover, the public markets have been unable to reflect the intrinsic value of the Company, which the Concerned Investor Group estimates to be at least $3.00 per share today, as set forth in more detail below.
The Concerned Investor Group believes the issues plaguing Terran are largely self-inflicted and can be remediated with the right management team and Board who are collectively committed to putting the Company on a path towards profitable growth.
"Terran must regain market credibility and more favorable access to capital, which we believe can only be achieved through a meaningful change in leadership and greater operating efficiency," the letter states. "Given the urgency that we believe exists, it is in the best interests of all of the Company’s stakeholders that we share our concerns publicly."
The Concerned Investor Group’s three-pronged approach it believes the Board must pursue immediately is as follows:
Separate the role of CEO and Chairman and install a new CEO with demonstrable industry experience and a track record of outperformance, who can turn around the operational, cultural, and capital allocation issues plaguing the Company.
Evaluate and implement best-in-class corporate governance practices by, among other things, de-staggering and reconstituting the Board to ensure it is best positioned to provide proper management oversight and act as fiduciaries with a stockholder-first mindset.
Commence a comprehensive strategic review process and retain outside financial and legal advisors to evaluate all strategic alternatives and opportunities available to maximize stockholder value.
The Concerned Investor Group is sharing its letter to the Board publicly so that all stakeholders understand the urgency facing the Company, and stockholders recognize the steps that it believes are required by the Board to protect and unlock the significant upside potential embedded in their investment.