Michael D. Tofias Recommends Surge Components to Explore Strategic Alternatives
January 04, 2016 at 04:24 pm EST
Share
On January 4, 2016, Michael D. Tofias announced his intention to make recommendations to Surge Components Inc.'s management and/or board of directors with the goal of enhancing stockholder value and the income-paying capacity of the common stock generally, through operational efficiencies, corporate finance strategies, cost containment, and corporate governance initiatives. Michael D. Tofias also recommend strategic initiatives, such as capital structure and balance sheet restructurings or a sale, merger, acquisition, or other transaction. Further, Michael D. Tofias stated that he might seek representation on the Company's board by Michael D. Tofias and/or other stockholders, the removal of anti-takeover mechanisms, the rescission of executives' golden parachutes, changes in the Company's management and board of directors, and incorporation of the Company in a different state.
Furthermore, Michael D. Tofias stated that he supports exploring the sale of some or all of the business to a strategic buyer that may benefit the company by reducing overlapping boards and management, if it results in creating and realizing value for stockholders.
Surge Components, Inc. is a supplier of electronic products and components. The Company operates with two sales groups, Surge Components (Surge) and Challenge Electronics (Challenge). Its products include capacitors, which are electrical energy storage devices, and discrete components, such as semiconductor rectifiers, transistors and diodes, which are single function low power semiconductor products that are packaged alone as compared to integrated circuits such as microprocessors. The products that the Company sells are utilized in the electronic circuitry of diverse products, including, but not limited to, automobiles, audio products, temperature control products, lighting products, energy related products, computer related products, various types of consumer products, garage door openers, household appliances, power supplies and security equipment. The Companyâs products include buzzers, speakers, microphones, resonators, alarms, chimes, filters, and discriminators.