Terran Orbital resolves shareholder objections
February 6, 2024
By Chris Forrester
Some weeks ago a group of shareholders in satellite builder Terran Orbital were complaining about the company’s financial performance and suggestions that Marc Bell, Terran’s CEO should be replaced.
A statement from Terran says that it has entered into an agreement with the investor group comprised of Sophis Investments, Sophis GP, Tassos Recachinas, Roark’s Drift, Joseph Roos, Jordi Puig-Suari, Roland Coelho, and Austin Williams (collectively, the ‘Investor Group’) and that the group’s objections had been resolved.
Bell, the Company’s Co-Founder, Chairman, and CEO, said: “Company management and the Board of Directors (the ‘Board’) take shareholder feedback seriously. We have had a very constructive dialogue with the Investor Group and appreciate their input toward achieving our shared goal of driving shareholder value. We are pleased to have come to an agreement and look forward to furthering our constructive relationship with the Investor Group.”
The objecting shareholders have been granted a seat on the company’s Board of Directors. They will select an independent director to represent their interests.
Tassos Recachinas, President and Chief Investment Officer of Sophis Investments, stated: “We are pleased that we have aligned with Terran Orbital’s management team and Board and appreciate the Company’s commitment to driving value enhancing initiatives in the best interest of all stockholders. We also appreciate the constructive relationship we have developed with the Company and look forward to working with the Board, including filling the currently vacant Board seat, as the Company moves forward on its strategic initiatives.”
The other shareholders in the group issued similar statements. A December 11th filing to the SEC stated that Terran is looking at “strategic alternatives” including a possible sale of the business or taking the business back into private ownership. Terran’s share price is still below $1 (February 5th at 75 cents) and a decline of 42 per cent over the past 6 months. Companies with share values below $1 are at risk of being delisted by the New York Stock Exchange.
Terran is in the process of building an initial 300 satellites out of a probable demand for 600 craft for Rivada Space.