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Terran Orbital responds to shareholder complaints

October 23, 2023

By Chris Forrester

Last week some investors in Terran Orbital complained about the satellite company’s strategy. They called for the replacement of the company’s CEO and that a strategic review be implemented. Now, Terran’s independent directors have responded, and expressed confidence in the existing directors. Not helping is news from the New York Stock Exchange that Terran’s shares risk being delisted.

The core problem from the complaining investors – who hold 8.4 per cent of the business – is that Terran has lost about 94 per cent of its market value since going public last year, and are calling on the aerospace and defence company to launch a strategic review and dump its CEO.

The response letter from the company’s Board, including its independent directors, said: “Terran Orbital’s Board of Directors and management team maintains an ongoing dialogue with shareholders and welcomes input about the Company’s strategy, performance and governance. The Board recently received a letter from a shareholder group led by Sophis Investments that made certain recommendations, including related to the status of Marc Bell as CEO and Chairman. Since then, many of Terran Orbital’s constituencies, including shareholders, customers and other business partners, have reached out to the Company for its perspective on the letter.”

The letter continued: “As the independent directors of Terran Orbital, we are writing to communicate our continued and unqualified support for Marc and the Company’s entire management team. We believe the Company has achieved a number of strategic successes in the last year that demonstrate management’s progress in transforming the Company into an industry leader – from its successful delivery of ten satellite buses as part of the Space Development Agency’s Tranche 0 program, to the launch of its new family of seven standard bus platforms covering a wide array of customer solutions, to its Responsive Space Initiative that commits to deliver standard buses to customers within 30 days of order and complete satellite systems with integrated payloads within 60 days.”

The Board added: “We are always open to value-creating ideas from shareholders and others. The Board is continuously engaged in reviewing strategic options that are presented to it by management and its advisors. Consequently, we have reviewed the Sophis Investments recommendations related to a strategic assessment and roadmap and have concluded that it does not offer any novel or innovative alternatives that the Company has not already considered and that the Company’s current strategy remains the best course for maximising long-term shareholder value.”

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