San Diego, CA, May 29, 2020 — Objective Capital Partners, a leading middle market valuation and investment banking firm, is pleased to announce it served as the financial advisor to RCM Technologies in connection with the adoption of their Shareholder Rights Plan. The Board of Directors has approved the adoption of a limited duration Stockholder Rights Plan, “The Rights Plan” and declared a dividend distribution of one right for each outstanding share of common stock. RCM Technologies is a premier provider of business and technology solutions designed to enhance and maximize the operational performance of its customers through the adaptation and deployment of advanced engineering, specialty healthcare and information technology services.
The Rights Plan is designed and intended to protect RCM and its stockholders from efforts to acquire or obtain control of RCM that the Board of Directors determines are not in the best interests of RCM and its stockholders, and to allow all stockholders to realize the long-term value of their investment in the Company. The Rights Plan will not interfere with any merger, tender or exchange offer or other business combination approved by the Board of Directors. Nor will it prevent the RCM Board of Directors from considering any offer that it considers to be in the best interest of its stockholders.
In light of the COVID-19 pandemic, recent market events, and other factors, the Board of Directors took notice that the closing price of the Company’s common stock has dropped by 59% year-to-date 2020 and by 69% as compared to its 52-week high. The Board of Directors believes RCM’s stock is significantly undervalued as the result of the current market environment, which creates the ideal scenario to implement a Rights Plan.
“Our intention is always to advise the Company and Board of Directors in an effort to achieve the most advantageous result for them and the shareholders. In these Rights Plan, or poison pill, scenarios we are creating an environment that mitigates the threat of unwanted acquisition”, said Channing Hamlet, Managing Director of the Objective Capital Partners Valuation Practice Group. “We are pleased to be able to assist great teams like RCM, especially during times of economic downturns like this when the risk of threat is heightened”.
Further details of the Rights Plan will be contained in a Current Report on Form 8-K and in a Registration Statement on Form 8-A that the Company will be filing with the Securities and Exchange Commission (SEC). These filings will be available on the SEC’s web site at www.sec.gov.
About Objective Capital Partners
Objective Capital Partners, LLC is a leading middle market valuation and investment banking firm offering M&A Advisory, Valuation Advisory, and Corporate Development Services. Founded in 2006, Objective’s seasoned professionals have collectively executed over 500 M&A advisory engagements and in excess of 1,000 valuation advisory projects within its four Practices: Business Services, Consumer, Healthcare & Life Sciences, and Technology. Objective Capital is relentlessly committed to providing world-class, sector-focused advisory services aligned with its clients’ objectives. Additional information can be found at www.objectiveibv.com.
About RCM Technologies
RCM is a premier provider of business and technology solutions designed to enhance and maximize the operational performance of its customers through the adaptation and deployment of advanced information technology and engineering services. RCM is an innovative leader in the delivery of these solutions to commercial and government sectors. RCM is also a provider of specialty healthcare services to major health care institutions and educational facilities. RCM’s offices are located in major metropolitan centers throughout North America and Serbia. Additional information can be found at www.rcmt.com.
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This news release is for informational purposes only and does not constitute an offer, invitation or recommendation to buy, sell, subscribe for or issue any securities. While the information provided herein is believed to be accurate and reliable, Objective Capital Partners and BA Securities, LLC make no representations or warranties, expressed or implied, as to the accuracy or completeness of such information. All information contained herein is preliminary, limited and subject to completion, correction or amendment. It should not be construed as investment, legal, or tax advice and may not be reproduced or distributed to any person. Securities and investment banking services are offered through BA Securities, LLC Member FINRA, SIPC. Principals of Objective Capital are Registered Representatives of BA Securities. Objective Capital Partners and BA Securities are separate and unaffiliated entities.