UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE TO
TENDER OFFER STATEMENT UNDER SECTION 14(d)(1) OR 13(e)(1)
OF THE SECURITIES EXCHANGE ACT OF 1934
SUTRON
CORPORATION
(Name of Subject Company (Issuer))
SATELLITE ACQUISITION CORP.
(Offeror)
An Indirect
Wholly Owned Subsidiary of
DANAHER CORPORATION
(Offeror)
(Names of
Filing Persons (identifying status as offeror, issuer or other person))
COMMON STOCK, PAR VALUE $0.01 PER SHARE
(Title of Class of Securities)
869380105
(CUSIP Number of Class of Securities)
Attila I.
Bodi
Vice President and Chief Counsel, M&A
2200 Pennsylvania Avenue, N.W., Suite 800W
Washington, D.C. 20037-1701
(202) 828-0850
(Name,
address, and telephone numbers of person authorized to receive notices and communications on behalf of filing persons)
Copies to:
Daniel Serota, Esq.
Margaret Butler, Esq.
Greenberg Traurig, LLP
The MetLife Building
New
York, NY 10166
(212) 801-9200
CALCULATION
OF FILING FEE
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Transaction Valuation |
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Amount of Filing Fee |
N/A |
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N/A |
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Check the box if any part of the fee is offset as provided by Rule 0-11(a)(2) and identify the filing with which the offsetting fee was previously paid. Identify the previous filing by registration statement number, or
the form or schedule and the date of its filing. |
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Amount Previously Paid: N/A |
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Filing Party: N/A |
Form of Registration No.: N/A |
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Date Filed: N/A |
x |
Check the box if the filing relates solely to preliminary communications made before the commencement of a tender offer. |
Check the appropriate boxes below to designate any transactions to which the statement relates:
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Third-party tender offer subject to Rule 14d-1. |
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Issuer tender offer subject to Rule 13e-4. |
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Going-private transaction subject to Rule 13e-3. |
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Amendment to Schedule 13D under Rule 13d-2. |
Check the following box if the filing is a final
amendment reporting the results of the tender offer. ¨
If applicable, check
the appropriate box(es) below to designate the appropriate rule provision(s) relied upon:
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Rule 13e-4(i) (Cross-Border Issuer Tender Offer) |
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Rule 14d-1(d) (Cross-Border Third-Party Tender Offer) |
Preliminary Communication / Additional Information and Where to Find
This filing relates solely to preliminary communications made before the commencement of a planned tender offer by Satellite Acquisition Corp.,
a Virginia corporation (Merger Sub), and indirect wholly-owned subsidiary of Danaher Corporation, a Delaware Corporation (Parent), for all of the outstanding common stock of Sutron Corporation, a Virginia
corporation (the Company), to be commenced pursuant to the Agreement and Plan of Merger, dated as of June 21, 2015, among Parent, Merger Sub and the Company.
The materials filed herewith are neither an offer to purchase nor a solicitation of an offer to sell securities. The tender offer for the
outstanding shares of the Companys common stock described in this filing has not commenced. At the time the offer is commenced, Parent will file a tender offer statement on Schedule TO with the Securities and Exchange Commission
(SEC), and the Company will file a solicitation/recommendation statement on Schedule 14D-9, with respect to the offer. The tender offer statement (including an offer to purchase, a related letter of transmittal and other offer
documents) and the solicitation/recommendation statement will contain important information that should be read carefully before any decision is made with respect to the tender offer. Those materials will be made available to the Companys
shareholders at no expense to them. In addition, all of those materials (and all other offer documents filed with the SEC) will be available at no charge on the SECs website: www.sec.gov.
Cautionary Statements Regarding Forward Looking Statements
Statements in these materials that are not strictly historical, including statements regarding the proposed acquisition of the Company, the
expected timetable for completing the transaction, potential benefits and synergies of the transaction, future opportunities for the combined businesses and any other statements regarding events or developments that we believe or anticipate will or
may occur in the future, may be forward-looking statements within the meaning of the federal securities laws, and involve a number of risks and uncertainties. There are a number of important factors that could cause actual events to
differ materially from those suggested or indicated by such forward-looking statements and you should not place undue reliance on any such forward-looking statements. These factors include risks and uncertainties related to, among other things:
general economic conditions and conditions affecting the industries in which Parent and the Company operate; the uncertainty of regulatory approvals; the parties ability to satisfy the tender offer and merger agreement conditions and
consummate the transaction; Parents ability to successfully integrate the Companys operations and employees with Parents existing business; the ability to realize anticipated growth, synergies and cost savings; and the
Companys performance and maintenance of important business relationships. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in Parents SEC
filings, including Parents Annual Report on Form 10-K for the year ended December 31, 2014 and Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2015 as well as the Companys SEC filings, including the
Companys Annual Report on Form 10-K for the year ended December 31, 2014 and Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2015. These forward-looking statements speak only as of the date of these materials
and Parent does not assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events and developments or otherwise, except as required by law.
EXHIBIT INDEX
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Exhibit Number |
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Description |
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99.1 |
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Hach Company and Sutron Corporation Joint Press Release dated June 22, 2015 |
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99.2 |
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Danaher Corporation Presentation to Sutron Corporation Employees dated June 22, 2015 |
Exhibit 99.1
FOR IMMEDIATE RELEASE
SUTRON
CORPORATION AGREES TO BE ACQUIRED BY HACH COMPANY AFFILIATE
FOR $8.50 PER SHARE
Sterling, VA and Loveland, CO June 22, 2015 Sutron Corporation (NASDAQ:STRN) and Hach Company are pleased to announce the entry into
a definitive merger agreement, pursuant to which an affiliate of Hach Company will acquire Sutron Corporation by making a cash tender offer to acquire all outstanding shares of common stock of Sutron, at a purchase price of $8.50 per share, for a
total enterprise value of approximately $39 million, net of cash.
Sutron would become a part of Hach Environmental, a group of companies including Ott
Hydromet and Sea-Bird Scientific, that serves customers with high quality and reliable instruments focused on environmental monitoring solutions for natural resource and oceanographic applications. The addition of Sutron to the group is expected to
provide many benefits, including the addition of core technologies in satellite communications, advanced air quality instrumentation, and highly sophisticated meteorological software solutions.
Glenn Cruger, President of Hach Environmental, said Sutron is an excellent complement to Ott Hydromets portfolio of water quality, quantity and
telemetry solutions with global reach that meets customers needs for integrated, seamless hydromet networks of sensors, communications and software. This combination will further build out our strong platform of environmental monitoring
solutions designed to help our customers solve their most challenging water resources problems.
Sutrons Chairman, Chief Executive Officer and
President, Raul McQuivey, said I believe this transaction represents an outstanding opportunity for our shareholders, employees, and customers. As part of Hach Environmental, Sutrons commitment to providing robust environmental
monitoring solutions to hydromet, meteorological and air quality professionals will continue, and we will be able to expand our capability to provide the end-to-end solutions our customers have been asking of us.
The Sutron Board of Directors has unanimously recommended that Sutron shareholders accept and tender their shares into the offer. The offer is subject to
customary conditions, including tender of 66 2/3 percent of the outstanding shares into the offer, on a fully diluted basis, and the absence of a material adverse change with respect to Sutron. The transaction is expected to be completed in the
third quarter of 2015.
About Sutron Corporation
Sutron Corporation is headquartered in Sterling, Virginia. Sutron provides hydrological, meteorological, air quality, oceanic and aviation real-time data
collection products, systems, software and services to a diversified customer base of federal, state, local and foreign governments, engineering companies, universities, hydropower companies and other commercial entities.
About Hach Environmental
The Hach Environmental group of
companies provides advanced water measurement technologies used in oceanography, hydrology, meteorology, and wastewater flow monitoring, along with world class sales and service support.
Notice to Investors
This announcement is neither an
offer to purchase nor a solicitation of an offer to sell securities. The tender offer for the outstanding shares of Sutron Corporation common stock described in this press release has not yet commenced. At the time the planned offer is commenced an
affiliate of Hach Company will file a tender offer statement on Schedule TO with the Securities and Exchange Commission and Sutron Corporation will file a solicitation/recommendation statement on Schedule 14D-9 with respect to the planned offer.
The tender offer statement (including an offer to purchase, a related letter of transmittal and other offer documents) and the solicitation/recommendation statement will contain important information that should be read carefully before any
decision is made with respect to the tender offer. Those materials will be made available to Sutron Corporation security holders at no expense to them. In addition, all of those materials (and all other offer documents filed with the SEC) will
be available at no charge on the SECs Web site: www.sec.gov.
Forward-Looking Statements
Statements in this release that are not strictly historical, including statements regarding the proposed acquisition, the expected timetable for completing the
transaction, future financial and operating results, benefits and synergies of the transaction, future opportunities for the combined businesses, and any other statements regarding events or developments that either party believes or anticipates
will or may occur in the future, are forward-looking statements within the meaning of the federal securities laws. There are a number of important risks and uncertainties that could cause actual results, developments and business
decisions to differ materially from those suggested or indicated by such forward-looking statements and you should not place undue reliance on any such forward-looking statements. These factors include risks and uncertainties related to, among other
things: general economic conditions and conditions affecting the industries in which the Hach and Sutron businesses operate; the uncertainty of regulatory approvals; the parties ability to satisfy the tender offer and merger agreement
conditions and consummate the transaction; Hachs ability to successfully integrate Sutrons operations and employees with its existing business; the ability to realize anticipated growth, synergies and cost savings; and Sutrons
performance and maintenance of important business relationships. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements are available in the respective SEC filings of
each of Sutron and of the ultimate parent entity of Hach Company, including the respective most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. These forward-looking statements speak only as of the date of this release and
neither party assumes any obligation to update or revise any forward-looking statement, whether as a result of new information, future events and developments or otherwise.
Exhibit 99.2
Exhibit 99.1
Welcome to Danaher
Associate Introduction June 22, 2015
Purpose of Our Meeting
Danaher Corporation
introduction
The merger between Danaher and Sutron
How will it impact you
Whats going to happen next
2
Strategic Platforms
Test & Life Sciences
Industrial Environmental Dental Measurement & Diagnostics Technologies
Water Quality Communications
Dental Diagnostics Product ID
Gilbarco Veeder- Instruments Life Sciences Automation Root
Outstanding portfolio of market-leading brands 3
Danaher, post separation
Danaher
2014 Revenue: $16.5B*
Life Sciences Diagnostics Water Quality
$2.5B
$4.8B $2.0B
Product ID Pall Dental
$1.6B $2.8B $2.9B
Founded in 1984
Headquartered in
Washington, DC
New York Stock Exchange
Ticker: DHR
Global team of ~57,400 associates (including Pall)
* Reflects aggregate revenues from constituent businesses (including with respect to Future Danaher, Pall) for
the respective, most recently
completed fiscal year. Pall revenues are based on 2014 FYE ended July 31,
2014. Includes $0.7B of annual revenues for Nobel Biocare and $0.2B of
annual revenues for Devicor, each of
which was acquired in December 2014.
You are joining other fantastic companies 4
Danaher Core Values
The Best Team Wins Customers
Talk, We Listen Kaizen is Our Way of Life Innovation Defines our Future We Compete for Shareholders
5
Danaher Business System
The best team wins
People plan process performance
Innovation defines our future
Customers customers
talk, we listen
Quality delivery cost innovation
Danaher kaizen is our way of life
6
DBS Toolkit Today
DBS FUNDAMENTALS
Voice of Value stream Transactional process Problem Visual and daily
Standard work Kaizen basics 5S
the customer mapping improvement solving process management
GROWTH LEAN LEADERSHIP
Leadership Associate
Dream Develop Deliver Reliability Transactional Operations Business process
development development
Transactional
Breakthrough ideation Speedy
Reliability PD Executive champion
Inside sales lean conversion and Lean conversion Strategic Planning
Introduction to DBS
open innovation Design Review (SDR) boot Camp orientation
Daily Mgmt.
Customer Accelerated Customer defect Production sales GM Leadership and Training and
Value selling Set-up reduction organization
segmentation product development tracking and resolution inventory Policy Deployment * facilitation
communications*
Demand Supplier quality Value analysis/ Production Acquisition Developing Crucial
Toll Gate #2 kaizen Sales force initiative
generation management value engineering preparation process Integration growth leaders * conversations
Pricing margin Just in time Total productive Financial
Lean software design Design for reliability Risk assessment *
management accounting manufacturing acumen
Danaher materials
Failure mode Accounts
receivable Leveraging Recruiting and
Project management Price leakage kaizen process
effects analysis best practices your impact * selection
(Includes kanban)
Product life cycle Product life cycle Accounts payable ID, developing and DBS leader
Quality system basics Heijunka
management
management best practices communications* boot camp
DBS compliance
Intellectual Customer service Energy conservation Advanced talent DBS leader
Strategic negotiations for medical device
property process and support kaizen assessment * continuing education
manufacturing
Sourcing workshop
Product planning Search engine Personal review Variation reduction Adjusting your Development for
and supply base
group optimization and team inspection kaizen leadership style * growth
management
User experience Commodity Measurement
DBS tool
Pay per click kaizen Situational leadership
design management system analysis certification (MBB)
Supply chain and
On-Line Driving the
Whats unique about DBS
tools logistics Change management
nurturing kaizen Danaher culture
-Integrated and improved over time best practices
-Smart usage pick for highest impact Lean supply chain
-Velocity of implementation Positioning and (Strategic supplier Leading Leadership
Messaging Kaizen multiple P&Ls essentials
-Commitment to use everybodys job productivity)
-Shared across Danaher companies 7
-* = Class in DHR Leadership Program
Core Value Drivers
Customer Quality
On-Time Delivery
Associate Internal Fill Rate Turnover
Core Growth
OMX
Shareholder Cash Flow / Working Capital Turnover Return on Invested Capital
How we measure our success 8
Water Quality Group Overview
9
Water Quality Overview
2014 Financials
Revenue ~$2.0B
Revenue Breakdown
Geographic Mix
2% 27%
51% 45% 55% 20%
Market Details
Market Size ~$10B Growth Rate +LSD/MSD
Growth Drivers
Increasing environmental awareness
Process optimization
Adoption and enforcement of new and existing regulations
High growth markets
Customers
Municipal water facilities
Industrial process and utilities
Environmental
and oceanographic institutions
Market leading positions capitalizing on attractive secular growth trends
10
Water Quality Platform Overview
Source Municipal
Industrial Agriculture Residential
End User
Government, Municipal W/WW Process industries Agribusiness, POU
Served research agencies facilities (Power, F&B, O&G, Farms
Customers etc.)
Water Quality PlatformAnalytics
Water
Quality PlatformTreatment
Strong brands, channels and technology across customer segments 11
Water Quality Impact
Every $1 spent on improving
water access, quality and sanitation generates $4 in economic return
Although more than 70% of the
earths surface is covered with water, less than 1% is available as safe drinking water 800 million people lack access to clean drinking water, with over 3 million people dying each year of water related diseases
Trojan UV systems treat over 7 billion gallons of drinking water More than 200 billion gallons of water is analyzed by
Hach instrumentation OTT flood warning systems protect more than 60 million people via early detection alarms Sea-Bird provides oceanographic data to help explain ocean-climate dynamics and its implications (e.g., sea level rise in the next 100
years)
DHR water quality products impact the lives of over 3 billion people globally 12
Water Quality Acquisition Success
WATER QUALITY
PLATFORM Water testing equipment Technology to test, analyze and for municipal and
+ = treat ultra-pure,
waste, ground, industrial customers ocean and drinking water
1999 2014
25% 5%
Revenue: ~$125M 30% Revenue: HGMs Other
Other 70%
Acquisitions
North ~$2.0B 50%
America 20% North
Europe America
Operating Margin: High teens Research & Operating Margin: ~25%
Development
Associates ~550 Associates ~6,800
Products
Sales & Marketing Products
Geographic
Footprint
Growth investments made a good company even better
still improving! 13
Hach Environmental Overview
Hydromet Oceanography
Elemental Analysis Pool and Spa Construction Material Testing
5 businesses focused on environmental
measurement
14
OTT Hydromet Served Applications
Coastal & E
Hydropower
Irrigation
Flood Warning Water Quality
Groundwater Water Treatment
Outstanding company
in th 15
OTT Hydromet Solutions
Water level Precipitation
Water Quality Data Acquisition Communication Service
Surface water All weather Surface water Station Manager
Radio Repair Ground water precipitation Ground waterMulti-channel Phone Training gauge Satellite Installation Present
Discharge weather
Instruments for
Software Solutions portable Network Management measurement Data Management Instruments for continuous measurement
Full spectrum of analytical instrumentation, communication support, and service
16
OTT Hydromet Strategic Vision
Designing answers
that go beyond the expections of hydromet professionals to support them in caring for the worlds water
17
Sutron Strategic Vision
Designing answers that go
beyond the expections of hydromet professionals to support them in caring for the worlds water
It is our
vision to become the worlds market leader in providing innovative, reliable, robust and quality Hydrologic, Meteorologic and Oceanic real-time data collection and control products, systems, software and services. We will achieve our vision by
continually offering state-of-the art products and outstanding services that meet or exceed our customers needs and expectations
18
SutronWhat We Like
Highly skilled,
accomplished employees
A deep knowledge of hydrology, meteorology, and oceanic customers and their
applications
Leading technology and product development capability
Market leadership and a leading brand name
OTT and Sutron offer highly complementary products, and the ability to better serve the end-to-end needs of our customers
Complementary geographical sales and service coverage
Outstanding company in attractive position to sustain continued growth 19
We Know There Is a Lot on Your Mind
What
happens to me? Do we change our letterhead and Will I still have a job? business cards?
What will it be? What
happens to my cell phone? Where will it be? What do we tell our customers and Will my boss change? suppliers?
What about my benefits? How should we answer the phone? What about my pay?
20
Here are Some Answers!
Sutron and Danaher remain
independent companies until closingbusiness
as usual
For now:
Same job, same manager, stay focused on the customer!
Keep your job title and grade
Keep your job
location
Keep your business card, email address, phone etc.
Keep the Sutron brand name
Keep your health and retirement plans
Keep your
enthusiasm and focus on the customer 21
DanaherBenefits
Danaher provides associates
a competitive benefits offering*:
Medical insurance
Dental insurance
Health Savings Plan
401k / retirement savings
Vision plan
Short-term and long-term disability
Others:
Accidental death and dismemberment, home insurance,
employee assistance, auto, home, pet insurance
Benefits will not change until after close of the merger
We will provide more information before benefits change
* Employer paid, employee co-pay, or employee paid, depending on the plan
No changes today more to come 22
What You Can Expect
In the Next Few Days
Letters/phone calls to customers, strategic partners, key suppliers Plan joint customer visits, as needed Plan
on-site visits to Colorado, Texas and India offices Start setting integration planning meeting dates
23
What You Can Expect
In the Coming Months
Ongoing interaction, communication and engagement from Danaher
and Sutron leaders
Until close of the merger:
Danaher and Sutron
will continue to operate separately
Danaher will not be involved in Sutrons day-to-day business
activities
Danaher and Sutrons senior leadership will start transition planning:
Ashish Raval and Anton Felder (MD Ott) will lead the commercial
integration planning team
Glen Goold will lead the Operational transitional planning with
counterparts from Hach and Ott
Operations: Stefan
Gramlich (Ott Dir Ops)
Finance: Joerg Mayer (Ott CFO)
HR and Benefits: Terry Samona (Hach Env. HR Dir)
Legal: Jeff Klembczyk (Hach Env. Counsel)
24
What You Can Expect
On and After Close
Upon close of the merger:
From a publicly traded company to a wholly -owned subsidiary
Will run as a stand-alone operating company
Changes in financial reporting
First 100 days post-close of the merger
Sutron
leadership introduction to DBS and Strategic Planning Process
Sutron and OTT leadership develops a Strategic
Plan
3 to 5 year planning horizon
Focused on growing the business and better serving customers
Some benefits may change to Danaher
Change is
jointly led by the Sutron and OTT leadership teams
25
Communication Lines are Open
Its normal to
feel apprehension, uncertainty and mistrust
Danaher has done this before, but each situation is unique
We dont have it all figured out yet
For now, there are more questions than answers, but we will keep lines of communication open
Communication is a two-way street and we welcome your questions and feedback
26
Notice to Investors
This presentation is neither
an offer to purchase nor a solicitation of an offer to sell securities. The tender offer for the outstanding
shares of Sutron Corporations (Sutron) common stock described in this filing has not commenced. At the
time the offer is
commenced, Danaher Corporation (Danaher) will file a tender offer statement on
Schedule TO with the Securities and Exchange
Commission (SEC), and Sutron will file a
solicitation/recommendation statement on Schedule 14D-9, with respect to the offer. The
tender offer statement
(including an offer to purchase, a related letter of transmittal and other offer documents) and the
solicitation/recommendation statement will contain important information that should be read carefully before any decision
is made
with respect to the tender offer. Those materials will be made available to Sutrons shareholders
at no expense to them. In addition,
all of those materials (and all other offer documents filed with the SEC)
will be available at no charge on the SECs
website: www.sec.gov.
Cautionary Statements Regarding Forward Looking Statements
Statements in these materials that are not strictly historical, including statements regarding the proposed acquisition of
Sutron, the
expected timetable for completing the transaction, future financial and operating results,
benefits and synergies of the transaction,
future opportunities for the combined businesses, and any other
statements regarding events or developments that either party
believes or anticipates will or may occur in the
future, are forward-looking statements within the meaning of the federal securities
laws. There
are a number of important risks and uncertainties that could cause actual results, developments and business decisions
to differ materially from those suggested or indicated by such forward-looking statements and you should not place undue reliance on
any such forward-looking statements. These factors include risks and uncertainties related to, among other things: general
economic
conditions and conditions affecting the industries in which Danaher and Sutron operate; the
uncertainty of regulatory approvals; the
parties ability to satisfy the tender offer and merger
agreement conditions and consummate the transaction; Danahers ability to
successfully integrate
Sutrons operations and employees with Danahers existing business; the ability to realize anticipated growth,
synergies and cost savings; and Sutrons performance and maintenance of important business relationships. Additional information
regarding the factors that may cause actual results to differ materially from these forward-looking statements is
available in Danahers
SEC filings, including Danahers Annual Report on Form 10-K for the year
ended December 31, 2014 and Quarterly Report on Form
10-Q for the quarterly period ended March 31,
2015 as well as Sutrons SEC filings, including Sutrons Annual Report on Form 10-K
for the year
ended December 31, 2014 and Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2015. These
forward-looking statements speak only as of the date of this presentation and neither party assumes any obligation to update or revise
any forward-looking statement, whether as a result of new information, future events and developments or otherwise.
27
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