Press Releases: 2013
ADDITION TO BOARD OF DIRECTORS
AJAX: November 26, 2013:
Automodular Corporation (“Automodular”) announces the addition of Parsa Kiai to its Board of Directors. Mr. Kiai resides in New York, USA and is the Managing Partner and Portfolio Manager of Steamboat Capital, LLC (“Steamboat”). Automodular was approached earlier this year by Mr. Kiai and Bo Shan of California, USA, Founder and Portfolio Manager of Gobi Capital, LLC (“Gobi”). On a combined basis, Steamboat and Gobi hold 1,345,800 shares, representing approximately 6.9% of the outstanding common shares of Automodular. In connection with Mr. Kiai joining the board, he and Mr. Shan as well as Steamboat and Gobi have entered into customary standstill arrangements expiring on the close of the Company’s 2015 annual meeting unless earlier terminated, including in the event that Mr. Kiai resigns from the board. Mr. Kiai brings to the Board considerable US investment experience and contacts.
Automodular Corporation is a supplier of sub-assembly, sequencing and transportation services to the automotive industry – Ford Motor Company’s Oakville Assembly Plant. The Company has two operating facilities and employs approximately 525 people.
For further information, contact:
Christopher S. Nutt
President and CEO
This press release contains forward-looking statements that involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are market and general economic conditions and the risk factors detailed from time to time in the Company’s periodic reports filed with the Canadian securities regulatory authorities and on SEDAR at www.sedar.com. Readers are cautioned not to rely on forward-looking statements. Specific forward-looking information in this document includes that Ford intends to insource the work currently being performed by Automodular in the fourth quarter of 2014, that Automodular will enter into commercial negotiations with Ford and the CAW once the transition date is known, that Automodular expects the total incremental cost of closing its Oakville facilities and severing its workforce to be $8.0 million, that we expect the majority of the residual exit costs will be recorded in 2014, that Automodular does not expect that the payment of dividends in accordance with our policy will impair our ability to secure additional contracts or hamper any potential acquisitions, that we are expecting examinations for discovery with respect to the GM litigation to occur at the beginning of 2014, that Automodular expects to generate positive earnings and cash flows over the remaining contract period and that Automodular is continuing to look for opportunities to leverage its core skills by securing contracts organically or through acquisitions. Except as required under continuous disclosure obligations, the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Automodular does not provide financial outlooks.