HC2 Holdings, Inc. (“HC2” or the “Company”) (NYSE: HCHC), a
diversified holding company, today filed its definitive consent
revocation statement and issued a letter to stockholders
highlighting the lack of constructive engagement by Percy Rockdale
LLC and certain of its affiliates (collectively, “Percy Rockdale”),
the Company’s progress towards improving its capital structure and
steps it has taken to enhance the Company’s Board of Directors (the
“Board”). Highlights from the letter include:
- HC2 has a truly independent Board
accountable to all stockholders, delivering stockholder value and
improving corporate governance and Board diversity.
- HC2’s decisive steps to improve its
capital structure and optimize costs have produced meaningful
results for our stockholders, evidenced by the 88% stock price
appreciation that occurred from the end of calendar year 2019 until
March 2, 2020, a date just prior to the surge in COVID-19-related
market volatility.
- Percy Rockdale, who only recently
became a stockholder of the Company, is running a costly and
distracting consent solicitation to remove your entire Board while
continuously refusing to engage with the Company during a global
pandemic.
- Percy Rockdale already nominated
its director candidates to be voted on at the Company’s Annual
Meeting of Stockholders, expected to be held in just a few months.
Their consent solicitation is unnecessary, costly and could destroy
stockholder value.
- Percy Rockdale has failed to
provide its business plan to support its risky attempt to take
control of your Company without paying you an appropriate control
premium.
The full text of the letter from Warren
Gfeller, the Chairman of the Board of Directors, to HC2
stockholders follows:
Dear HC2
Stockholders:
Your Board of Directors and management team
believe it is unfortunate that, rather than engage in a
constructive and collaborative dialogue on how to create
sustainable long-term value for all HC2 stockholders, Percy
Rockdale, a New York hedge fund that only recently became a
stockholder of the Company on December 26, 2019, has chosen instead
to run a costly and distracting consent solicitation in an attempt
to remove certain executives and the Board of Directors, which
risks jeopardizing stockholder value. Percy Rockdale is attempting
to take full control of your Board of Directors by removing the
Company’s current directors and replacing them with Percy
Rockdale’s handpicked nominees, including Michael Gorzynski, Percy
Rockdale’s sole manager. It is equally concerning that Percy
Rockdale chose to take advantage of the Company’s stockholder
friendly governance provisions - such as the right to act by
written consent - during a period of extreme market uncertainty
caused by the coronavirus which will unnecessarily cause
disruption. Percy Rockdale has already nominated director
candidates to be voted on at the Company’s Annual Meeting of
Stockholders, expected to be held at its customary time in just a
few months.
Before our current executive team took the helm,
the Company had one business classified as a discontinued operation
and was on a path to de-listing from the New York Stock Exchange.
Now, HC2 is a well-diversified holding company and is strategically
positioning itself for the future, diligently improving its capital
structure through monetizing assets, reducing debt and streamlining
its operating expenses. Unnecessary changes to this team and the
Board of Directors are not warranted. Our current Board, made up of
six highly qualified directors, continuously provides value through
guidance and governance and has been a driving force in expanding
the Board with qualified candidates with appropriate experience and
skillsets. The Board welcomed the addition of Ms. Julie Springer
last month after a lengthy and thorough director search process
begun by our 100% independent Nominating and Governance Committee,
well in advance of the arrival of Percy Rockdale in late December
2019.
Percy Rockdale is unnecessarily accelerating
your annual vote on each and every one of our directors (given we
have an annually elected Board), including our President and CEO,
by launching an unwarranted consent solicitation during a global
pandemic seeking to take full control of your Board and potentially
jeopardizing the future value of the Company’s assets with its own
handpicked nominees. Our Annual Meeting of Stockholders is only a
few months away and Percy Rockdale has already nominated candidates
to be considered and voted on by you at that meeting. Percy
Rockdale’s consent solicitation is irrational, unwarranted and
risks destroying long-term stockholder value during a critical
inflection point in HC2’s business model.
PERCY ROCKDALE REFUSES TO
ENGAGE WITH YOUR BOARD DESPITE OUR MULTIPLE EFFORTS TO ENGAGE IN A
CONSTRUCTIVE DIALOGUE
On multiple occasions, both before and after
Percy Rockdale initiated its consent solicitation, members of your
Board of Directors and management team reached out to and offered
to engage directly with Percy Rockdale to discuss its concerns in a
cooperative manner. Despite these ongoing attempts, Percy
Rockdale continuously refused to engage with your Board of
Directors or management team. We are confused by this decision
given our understanding of the importance investors place on such
constructive engagement.
Percy Rockdale’s irrational decision to refuse
to engage with the Company and run a costly consent solicitation
after being a stockholder for just three months only serves to
distract your Board of Directors and management team while
significantly increasing Company expenses and destroying
stockholder value in the midst of the global COVID-19 pandemic.
Currently, your Board of Directors and management team are
committed to focusing on managing the Company’s business and
preserving stockholder value during these unprecedented and highly
uncertain times, as well as ensuring the safety, health and
well-being of the Company’s employees. Yet, despite the unwarranted
and wasteful nature of Percy Rockdale’s attempt to replace your
entire Board of Directors, your independent Directors and
management team continue to be open to engaging with Percy
Rockdale, as we would do with any of our stockholders.
PERCY ROCKDALE IS ATTEMPTING
TO TAKE CONTROL OF YOUR COMPANY WITHOUT PAYING YOU AN APPROPRIATE
CONTROL PREMIUM
Percy Rockdale has been an HC2 stockholder for
JUST three months. Rather than engage in a constructive dialogue
with us, Percy Rockdale has chosen to pursue an unwarranted and
unnecessary consent solicitation without any inside knowledge of
HC2’s business operations as a means to take full control of the
Company without providing you an appropriate control premium.
Despite demanding that stockholders rush to make
critical but unnecessary decisions, Percy Rockdale compounds its
risky behavior by failing to produce a coherent business plan
describing in detail how their director nominees will be better
positioned than your Board of Directors to generate long-term
sustainable value for all stockholders.
YOUR BOARD AND MANAGEMENT TEAM
ACQUIRED THE COMPANY WHEN IT WAS JUST A SINGLE, LOSS GENERATING,
HELD FOR SALE BUSINESS, AND, OVER THE SUBSEQUENT SIX YEARS, BUILT
HC2 INTO A WELL-POSITIONED, DIVERSIFIED HOLDING COMPANY WITH SEVEN
MAJOR SEGMENTS ACROSS MULTIPLE SECTORS
Philip Falcone, our current Chief Executive Officer and
President of HC2, purchased a 24% interest in PTGi Holding in 2014
while at HRG Group, which was a publicly traded diversified holding
company, with the objective of building out a diversified platform.
At the time, PTGi Holding was a NYSE listed shell company with one
money-losing asset, and was in the process of liquidating and
de-listing from the New York Stock Exchange. The company was
renamed HC2 Holdings (“HC2”) and on December 1, 2014, Mr. Falcone
left his role of Chairman & CEO of HRG Group to fully focus on
running and building out the HC2 platform. Six years later, HC2 is
now made up of seven well-established and diversified business
segments. During those six years, your Board of Directors and
management team made several investments that proved to be
accretive to our stockholders, including:
DBM Global
- Increased annual Adjusted EBITDA by
approximately 65% from $46 million, on a pro forma basis, in 2014
to $76 million in 2019.
- Reported backlog at $498 million at
year-end 2019, on an adjusted basis, which includes awarded, but
not yet signed contracts, to a near record level of $826
million.
- Arranged the financing for the 2018
acquisition GrayWolf Industrial, which expanded DBM’s capabilities
to include specialized heavy-industrial construction, maintenance,
turnaround, and fabrication services; this diversification of DBM’s
service offerings provided more recurring revenues to counter the
cyclicality of the U.S. construction market.
- Through HC2’s assistance in the
acquisition process, DBM has significantly expanded annual
fabrication capacity and extended its service footprint to target
high-growth construction markets in the Western U.S. and Gulf Coast
regions.
- Project completions since 2014 have
included the recently completed LA Rams / LA Chargers stadium in
Inglewood, CA, as well as project work with blue chip customers,
including Amazon, Apple, Facebook, Google and Tesla.
Global Marine Group (“GMG”)
- In February 2020, HC2 completed the
sale of GMG, excluding the Huawei Marine Networks (“HMN”) joint
venture interest, for $250 million less debt, pension and other
adjustments. HC2 received net proceeds of approximately $99 million
from the transaction.
- In October 2019, announced a
definitive agreement for the sale of HMN, valuing GMG’s 49%
interest at $140 million with the sale to occur in two
tranches. • Proceeds of approximately $85 million for the
initial sale of the 30% stake, less applicable taxes and other
adjustments; expected to close by early Q2 2020. • Remaining
19% interest retained under a two-year put option.
- HC2 acquired GMG in September 2014
at a value of $260 million as compared to a value of $390 million
from the combined transactions, an increase of 50% in less than 5
years. • Refreshed fleet, renewed all three maintenance
contracts, pivoted business to high growth offshore power
segment.
American Natural Energy
Since HC2’s initial investment in 2014:
- Increased annual Adjusted EBITDA from a small loss, on a pro
forma basis, in 2014 to $17 million in 2019.
- Increased its Compressed Natural Gas (“CNG”) fueling station
footprint to approximately 60 stations across 17 states from 5
stations at the time of HC2’s initial investment.
- Now one of the largest 100% Class-8 eligible CNG fueling
footprints and one of the largest purchasers and distributors of
Renewable Natural Gas ("RNG") in the U.S.
- In 2019, delivered gasoline-gallon equivalents (“GGE”) of
approximately 19 million, or approximately 24 million on an
annualized basis.
Continental Insurance Group
Ltd.
Since HC2’s initial acquisition of the long-term
care assets from American Financial Group in 2015, our insurance
subsidiary:
- Has grown platform assets to approximately $4.5 billion in
cash, cash equivalents and invested assets and has increased total
adjusted capital base by nearly fourfold in 4 years, through its
2018 acquisition of Humana’s long-term care insurance
business.
- Built a powerful insurance platform, including a team with
approximately 130 insurance professionals based in Austin, Texas,
which has served as a competitive advantage in acquiring books of
business.
- All completed with an approximate $30 million at risk capital
today.
Pansend Life Sciences
Since its inception in 2014, HC2’s Pansend Life
Sciences platform has made strategic investments in companies
developing innovative healthcare technologies and solutions with
significant potential for value creation.
MediBeacon
MediBeacon is a medical technology company
focused on advancing fluorescent tracer agents and transdermal
detection technology to provide vital and actionable measurement of
organ function.
- Transdermal GFR Measurement System ("TGFR") is intended to
measure glomerular filtration rate or “GFR” in patients with
impaired or normal kidney function.
- In 2018, granted Breakthrough Device designation for TGFR from
the U.S. Food and Drug Administration.
- In 2019, entered an exclusive commercialization partnership
with Huadong Medicine that included an initial $15 million equity
investment at a $315 million post-money valuation, which will fund
the company through upcoming FDA pivotal clinical trials and the
upcoming FDA approval process.
- Other possible uses of the fluorescent tracer technology
include transdermal GI permeability measurement, and ocular and
surgical visualization.
R2 Technologies
R2 Technologies is a medical technology company
developing CryoAesthetic technologies that promote the appearance
of clear youthful skin.
- Two distinct medical devices in development provide skin
lightening and evening to patients using cold technology.
- Received two U.S. Food and Drug Administration approvals.
- In 2019, entered an exclusive distribution agreement with
Huadong Medicine. In addition, Huadong made a $10 million equity
investment at a post-money valuation of $60 million to fund the
company's next phase of product and market development.
BeneVir Biopharm
- BeneVir Biopharm was acquired by
Janssen Biotech, Inc. (Johnson & Johnson), for up to $1.04
billion, with a $140 million upfront cash payment and approximately
$900 million of pre-determined milestones (Pansend owned ~76% of
BeneVir); HC2’s total investment in BeneVir was approximately $8
million.
HC2 Broadcasting
Since HC2’s initial broadcast acquisitions in November 2017, the
platform has made significant progress in achieving its goal of
building the largest, most comprehensive, state-of-the-art U.S.
over-the-air (“OTA”) distribution platform for high-quality
providers to deliver their content to rapidly growing OTA
viewership in the U.S.
- HC2 has acquired television broadcast spectrum and licenses to
cover a significant part of the U.S.
- Currently, we have 210 operating stations in 91 DMAs in total
across the U.S. and Puerto Rico. These 91 DMAs represent 74% of
total U.S. TV households, according to Nielsen.
- When we complete the build out of an additional 40 licenses,
which we plan to bring online in 2020, we expect to have presence
in approximately 100 DMAs that represent nearly 80% of total U.S.
TV households, including 9 of the top 10 and 34 of the top 35 DMAs.
This would make us the largest over-the-air broadcast distribution
platform in the U.S. and would put us in an excellent position to
attract additional high quality content providers.
PTGi ICS
Since the inception of HC2 in 2014, PTGi ICS
completed a rigorous restructuring of the business, which had been
generating losses prior to HC2’s involvement and has contributed
meaningful upstream dividends to HC2 as its business runs off its
remaining lifecycle.
HC2 IS MAKING MEANINGFUL
PROGRESS ON IMPROVING ITS CAPITAL STRUCTURE
HC2 has developed and implemented a plan to
improve the Company’s capital structure and has repositioned itself
with a core focus on long-term growth. In November 2018, the
Company made the prudent decision to refinance its debt during a
time of very unfavorable credit market conditions. The Company
completed the refinancing amid the ongoing uncertainty in the
global credit markets and despite unfavorable terms, rather than
risk the possibility of a “going concern opinion” that would result
if the refinancing was not completed by mid-February 2019. A “going
concern opinion” would have put the company under tremendous
pressure, potentially disrupting operations and placing the entire
enterprise in jeopardy.
Since the 2018 refinancing, HC2 has been
forthright and transparent with stockholders about the challenges
posed by our capital structure. Consequently, the Board of
Directors and management team recognized that challenge and made
debt reduction the number one priority well in advance of Percy
Rockdale’s arrival in late December 2019.
Your Board of Directors and management
team identified and implemented actions designed to reduce debt and
increase liquidity:
- Completing the sale of Global
Marine Group and the impending close on the sale of Global Marine
Group’s 49% joint venture with Huawei Marine Networks Co.,
Ltd.
- The completed redemption of $77
million of the Company’s 11.5% Notes, with an additional portion of
11.5% Notes to be redeemed following the closing of the joint
venture sale.
- Announcing advanced discussions to
divest Continental Insurance and the exploration of strategic
alternatives for DBM Global Inc., the proceeds of which will be
used to further redeem and potentially eliminate the 11.5%
Notes.
Since announcing its strategic plan, your Board
of Directors, together with HC2’s management team, have
continuously informed our stockholders that the Company is laser
focused on debt reduction. The recent sale of Global Marine Group
is clear evidence that your Board of Directors and management team
have followed through on our promises.
OPTIMIZING OUR COST STRUCTURE
AND MANAGING RISK
Well in advance of Percy Rockwell’s arrival as a
stockholder in late December 2019, in addition to reduced bonus
costs, your Board of Directors and management team made a concerted
effort to reduce HC2’s corporate vendor costs and third-party
expenses. This is evident from FY2018 to FY2019, where HC2 reduced
corporate expenses by $8 million, or approximately 31%.
Also prior to the arrival of Percy Rockdale in
late December 2019, your Board of Directors and management team
meaningfully reduced overhead while at the same time appropriately
managing risk. Your Board of Directors prudently sought to mitigate
the risks inherent across the Company’s multiple complex
subsidiaries while at the same time reduced overhead costs.
EXECUTING A STRATEGIC PLAN
THAT IS DELIVERING RESULTS AND GENERATING SUSTAINABLE STOCKHOLDER
VALUE
We are executing our strategic plan and are
delivering results. In the past two years, the Company has taken
the following steps, among others, designed to deliver long-term
sustainable value to all stockholders:
August 9, 2018 - HC2 portfolio company
Continental General Insurance completed acquisition of $2.4 billion
long-term care insurance business from Humana Inc.
October 22, 2018 - Announced strategic
alternatives for GMG.
November 30, 2018 - HC2 portfolio company DBM
Global Inc. completed acquisition of GrayWolf Industrial.
February 25, 2019 - Amended the Company’s
By-Laws to implement majority voting standard of directors in
uncontested elections.
March 12, 2019 - Announced plan to reduce
holding company’s debt.
June 13, 2019 - Pansend Life Sciences’ portfolio
company, R2 Technologies, entered into exclusive China /
Asia-Pacific distribution agreement.
June 17, 2019 - ANG, an HC2 portfolio company,
acquired ampCNG.
July 31, 2019 - Pansend Life Sciences’ portfolio
company MediBeacon announced $30 million investment from Huadong
Medicine and an exclusive commercialization partnership in greater
China.
October 25, 2019 - HC2 Broadcasting Holdings
Inc. completed $79 million financing.
October 30, 2019 - HC2's Marine Services segment
announced sale of HMN joint venture.
December 19, 2019 - Broadcasting announced
considerable progress in the build-out of its OTA platform, and
added notable high-quality content providers to its lineup,
including beIN SPORTS XTRA, and later announced agreements with
content providers Cheddar News and CBS Television Distribution's
new DABL network.
January 30, 2020 - Announced definitive
agreement to sell GMG for total enterprise value of $250
million.
February 11, 2020 - Announced the appointment of
a new female director (Julie Springer) and announced that our CEO
of both HC2 Holdings and Broadcasting, Phil Falcone, would not
receive a bonus in 2019.
These prudent steps taken by your Board of
Directors laid the foundation for the 88% stock price appreciation
that occurred from the end of calendar year 2019 until March 2,
2020, a date just prior to the surge in COVID-19-related market
volatility, and a 67% stock price appreciation since the Company’s
2019 Annual Meeting of Stockholders (i.e., between June 13, 2019
and March 2, 2020).
March 2, 2020 - HC2 completed sale of GMG and
provided notice of redemption to bondholders to redeem $76.9
million of HC2’s 11.5% Senior Secured Notes.
April 2, 2020 - HC2 completed redemption of
$76.9 million of HC2’s 11.5% Senior Secured Notes.
In addition, in 2019 total Adjusted EBITDA more
than doubled to a record $91 million. While continuing to
deleverage, HC2 is transitioning toward a growth and innovation
model with an emphasis on our existing portfolio holdings of
Broadcasting, Energy and Life Sciences, as we continue to explore
strategic options for DBM Global.
As we continue to explore strategic alternatives
for our insurance and construction businesses, we believe we are
firmly on the path to strengthening the balance sheet and
transforming HC2 into a growth and innovation company. We
believe your current Board of Directors and management team possess
the right combination of financial acumen, operational expertise,
and relevant skills and have the established track records to make
the critical decisions that will dictate the success of our new
business model.
WE HAVE A TRULY INDEPENDENT
BOARD ACCOUNTABLE TO ALL STOCKHOLDERS
In addition to our plan to pivot our model to
become a growth and innovation company, your Board of Directors
continually strives to add skillsets that will support the
Company’s evolution. Five of the six directors on your Board of
Directors are independent. Your Directors also hail from numerous
geographic areas and professional backgrounds and have served on
the boards of world-class public companies, including other
diversified holding companies.
Earlier this year, we enhanced our Board of
Directors by welcoming Julie Springer as the newest independent
director. Since early 2019, well prior to the arrival of Percy
Rockwell in late December 2019, our 100% independent Nominating and
Governance Committee conducted a thorough and robust search process
to identify Ms. Springer—a new, independent and highly qualified
director—who not only possesses the requisite skill set to
complement her fellow directors, but also enhances Board diversity.
The Nominating and Governance Committee had been looking for a
qualified candidate with deep marketing expertise and adding a
proven leader in marketing and branding like Ms. Springer will help
HC2 better communicate our long-term strategy of evolving into a
growth and innovation story.
Your Board of Directors has always demonstrated
a track record of stockholder accountability, including the
appointment of a preferred stockholder nominee, Lee Hillman, to
your Board of Directors. Unfortunately, by choosing to not
constructively engage with your Board of Directors and making its
director candidates unavailable for our well-established nominee
evaluation process, a process which is considered corporate
governance best practice, Percy Rockdale has demonstrated a desire
to play by its own rules, a blatant disregard for you, our
stockholders.
The Company’s incumbent directors possess
extensive experience in energy, telecommunications, restructuring,
leveraged finance, distressed debt, media and consumer marketing.
Additionally, five of our directors have public company board
experience and four have served as executive officers of public
companies. Your highly qualified directors were carefully
selected to provide the right mix of skills and experience to
oversee the successful execution of the Company’s strategic
plan.
PERCY ROCKDALE’S IRRATIONAL
AND UNWARRANTED CONSENT SOLICITATION COULD DESTROY STOCKHOLDER
VALUE
Percy Rockdale, a New York hedge fund that only
recently became a stockholder of the Company on December 26, 2019,
has yet to publicly disclose any detailed plans, proposals, ideas
or information as to Percy Rockdale’s proposed path forward for the
Company. Percy Rockdale has neither identified what it would do
differently if given control of the Company nor articulated how it
intends to operate our diverse set of businesses in a way that will
create sustainable long-term stockholder value.
Because Percy Rockdale chose to refuse to engage
in a constructive dialogue with our independent Directors and
instead opted to run a costly, distracting and unnecessary consent
solicitation to take control of your Board of Directors, Percy
Rockdale puts all of our progress to date at serious risk.
We fear Percy Rockdale’s irrational and unwarranted
campaign for full control of our Board of Directors puts all of our
stockholders at risk and could destroy stockholder
value.
THE CHOICE IS
CLEAR
PLEASE SIGN, DATE AND PROMPTLY
RETURN THE ENCLOSED WHITE CONSENT
REVOCATION CARD
Your Board of Directors
unanimously recommends that stockholders sign,
date and promptly return the enclosed WHITE
Consent Revocation Card and mark “REVOKE MY
CONSENT” boxes to oppose each of Percy Rockdale’s
proposals and support the Company’s independent, experienced and
highly qualified directors. Please do not return or
otherwise vote any green consent card sent to you by Percy
Rockdale—even as a protest vote against Percy
Rockdale.
No matter how many or how few shares you
own, your revocation of consent is extremely important to ensuring
HC2 can carry out its strategic objective of creating near-term
value and driving even higher returns over the long term for all of
our stockholders. Please act today and make your voice heard
regarding the future of the Company.
If you have any questions or need assistance in
voting your shares, please contact our soliciting agent, Okapi
Partners. Stockholders may call Okapi at (877) 629-6355. Banks and
brokerage firms may call Okapi at (212) 297-0720. Stockholders,
banks and brokerage firms may also contact Okapi via email at
HC2consent@okapipartners.com.
We believe that HC2’s highly qualified and
experienced Board of Directors is best positioned to oversee the
continued successful execution of HC2’s strategy and to deliver
substantial value to all of our stockholders. On behalf of the
Board of Directors and our management team, thank you for your
continued support, interest and investment in HC2.
On behalf of your Board of Directors,
sincerely,
Warren H. Gfeller Chairman of the Board of Directors, HC2
If you have any questions or need assistance
voting contact:
Okapi Partners1212 Avenue of the AmericasNew
York, New York 10036Banks and Brokers Call Collect: (212)
297-0720All Others Call Toll Free: (877) 629-6355Email:
info@okapipartners.com
About HC2
HC2 Holdings, Inc. is a publicly traded (NYSE:
HCHC) diversified holding company, which seeks opportunities to
acquire and grow businesses that can generate long-term sustainable
free cash flow and attractive returns in order to maximize value
for all stakeholders. HC2 has a diverse array of operating
subsidiaries across multiple reportable segments, including
Construction, Energy, Telecommunications, Life Sciences,
Broadcasting, Insurance and Other. HC2’s largest operating
subsidiary is DBM Global Inc., a family of companies providing
fully integrated structural and steel construction services.
Founded in 1994, HC2 is headquartered in New York, New York. Learn
more about HC2 and its portfolio companies at www.hc2.com.
Cautionary Statement Regarding
Forward-Looking Statements
Safe Harbor Statement under the Private
Securities Litigation Reform Act of 1995: This communication, and
certain oral statements made by our representatives from time to
time may contain, forward-looking statements. Generally,
forward-looking statements include information describing actions,
events, results, strategies and expectations and are generally
identifiable by use of the words “believes,” “expects,” “intends,”
“anticipates,” “plans,” “seeks,” “estimates,” “projects,” “may,”
“will,” “could,” “might” or “continues” or similar expressions. The
forward-looking statements in this communication include, without
limitation, any statements regarding our expectations regarding
building stockholder value, future cash flow, longer-term growth
and invested assets, the timing or prospects of any refinancing of
HC2's remaining corporate debt, any statements regarding HC2’s
expectations regarding entering definitive agreements in respect of
the potential divestitures of Continental Insurance and/or DBM
Global, reducing HC2’s leverage and related interest expense at the
holding company level generally and with the net proceeds of such
divestitures, reducing corporate overhead, growth opportunities at
HC2’s Broadcasting and Energy businesses and unlocking value at
HC2’s Life Sciences segment. Such statements are based on the
beliefs and assumptions of HC2’s management and the management of
HC2’s subsidiaries and portfolio companies. The Company believes
these judgments are reasonable, but you should understand that
these statements are not guarantees of performance or results, and
the Company’s actual results could differ materially from those
expressed or implied in the forward-looking statements due to a
variety of important factors, both positive and negative, that may
be revised or supplemented in subsequent statements and reports
filed with the Securities and Exchange Commission (the “SEC”),
including in our reports on Forms 10-K, 10-Q and 8-K. Such
important factors include, without limitation, issues related to
the restatement of our financial statements; the fact that we have
historically identified material weaknesses in our internal control
over financial reporting, and any inability to remediate future
material weaknesses; capital market conditions, including the
ability of HC2 and its subsidiaries to raise capital; the ability
of HC2’s subsidiaries and portfolio companies to generate
sufficient net income and cash flows to make upstream cash
distributions; volatility in the trading price of HC2’s common
stock; the ability of HC2 and its subsidiaries and portfolio
companies to identify any suitable future acquisition or
disposition opportunities; our ability to realize efficiencies,
cost savings, income and margin improvements, growth, economies of
scale and other anticipated benefits of strategic transactions;
difficulties related to the integration of financial reporting of
acquired or target businesses; difficulties completing pending and
future acquisitions and dispositions; activities by activist
stockholders, including a proxy contest, consent solicitation or
any unsolicited takeover proposal; effects of litigation,
indemnification claims and other contingent liabilities; changes in
regulations and tax laws; the risks and uncertainties associated
with, and resulting from, the COVID-19 pandemic; and risks that may
affect the performance of the operating subsidiaries and portfolio
companies of the Company. Although HC2 believes its expectations
and assumptions regarding its future operating performance are
reasonable, there can be no assurance that the expectations
reflected herein will be achieved. These risks and other important
factors discussed under the caption “Risk Factors” in our most
recent Annual Report on Form 10-K filed with the SEC, and our other
reports filed with the SEC could cause actual results to differ
materially from those indicated by the forward-looking statements
made in this communication.
You should not place undue reliance on
forward-looking statements. All forward-looking statements
attributable to HC2 or persons acting on its behalf are expressly
qualified in their entirety by the foregoing cautionary statements.
All such statements speak only as of the date hereof, and unless
legally required, HC2 undertakes no obligation to update or revise
publicly any forward-looking statements, whether as a result of new
information, future events or otherwise.
Contact:
Investor RelationsGarrett
Edsonir@hc2.com(212) 235-2691
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