Beleaguered Terran Orbital holds Town Hall meet
October 24, 2023
By Chris Forrester
Satellite builder Terran Orbital, facing demands from some shareholders to fire the CEO and also being forced to restructure the company’s shares, is to hold a Town Hall meeting for shareholders.
The virtual event is intended to be “transparent and accessible” and with “shareholders our top priority” said the company’s announcement. It is scheduled for 3pm ET on October 26th.
Marc Bell, Co-Founder, Chairman and CEO of Terran Orbital, commented: “Town Halls are a great platform to listen to and discuss topics important to our shareholders.”
Bell will lead the session and provide a financial, operational, and strategic update, followed by a stakeholder Q&A session. The company will not provide any quarterly financial results, which instead will be addressed at its previously announced earnings call on November 14th.
Terran has a very healthy order book and is building more than 600 satellites.
Terran is expected to restructure its shares, possibly by means of a reverse stock split subject to shareholder approval in order to remain compliant with New York Stock Exchange rules, which require share to be valued at more than $1 per share. October 23th saw its shares trading at about 66 cents per share (a 1.78 per cent fall on the day).
However, the dissenting shareholders (who hold some 8.4 per cent of Terran’s stock) continue to be unhappy. A statement from the shareholder group issued on October 23rf said: “We find it deeply troubling that Terran’s Board has seemingly rejected out of hand our thoughtfully considered proposals designed to protect and maximize shareholder value. Despite purporting to welcome shareholders’ input, the Board has ignored multiple requests to meet with our group – comprised of company co-founders and others who are collectively one of its largest shareholders – so that we may present our views in a constructive manner. We believe the Board’s actions reflect its lack of urgency in addressing the issues facing the company in addition to the deep-rooted corporate governance problems plaguing Terran, which has continued to see its stock value deteriorate.”