The Concerned Investor Group reached settlement agreement with Terran Orbital (LLAP)

Key Summary:  On October 12, 2023, Concerned Investors, holding 8.4% stock, urged changes for performance and governance. On November 9, 2023, they reiterated proposals. On February 4, 2024, an Agreement was reached for a new director appointment, allowing three candidate recommendations.

M.Cap: $162 million | Terran Orbital Corporation manufactures and sells satellites for aerospace and defense industry in the United States.

Background

On October 12, 2023, The Concerned Investor Group, including Sophis Investments LLC, Roark's Drift, LLC, Austin Williams, Roland Coelho, Jordi Puig-Suari, and affiliates, holding 8.4% of common stock, raised concerns about poor stock performance, undercapitalization, and misaligned compensation incentives. They recommended immediate actions: (i) Separate CEO and Chairman roles, appoint an experienced CEO; (ii) Implement top-tier corporate governance, including board restructuring; (iii) Start a comprehensive strategic review with independent advisors to maximize value. Source

On November 9, 2023, The Concerned Investor Group sent an open letter and issued a press release to the Board, reiterating their request for a meeting to discuss proposals aimed at enhancing long-term shareholder value. These proposals include separating the Chairman and CEO roles, appointing an experienced CEO, improving corporate governance, and conducting a strategic review.

Update

On February 4, 2024, The Concerned Investor Group (14%) and the company entered an Agreement for the prompt appointment of a new director. The Concerned Investor Group could recommend up to three candidates, with final approval from the Committee and the Board.