PHILADELPHIA, March 31, 2017 /PRNewswire/ -- Horton Capital Partners Fund, LP ("Horton"), one of the largest outside shareholders of CPS Technologies Corp. ("CPS" or the "Company") (NASDAQ: CPSH) with ownership of approximately 5% of the common stock per its 13D filed this morning, announced that it has delivered a letter (the "Letter") to the Company's Board of Directors (the "Board").
In the Letter, Horton expresses its disappointment that the Board has refused to engage in constructive discussions with them over the past month. In response to the Company's invitation, Horton submitted a Nomination Notice which included five highly qualified candidates for consideration by the Board as potential new members. All of these candidates were rejected by the Company without a single discussion with any of them, despite possessing deep industry, operational, capital management and other skills the Board desperately needs. The Company also indicated its willingness to spend significant shareholder capital to protect the current status of the Board in the event Horton pursued a proxy contest.
Disappointed by the level of entrenchment exhibited by the Board, but not interested in wasting shareholder capital, Horton has revoked its Nomination Notice. Based on recent conversations with shareholders representing approximately 20% of the common stock, Horton reiterates that the status quo is not acceptable to outside shareholders, and remains hopeful that the Company will take appropriate action.
Horton is encouraged by the Company's adoption of its proposal for a majority voting standard in director elections, as this was long overdue, but believes there are many other corporate governance items that need to be addressed.
The full text of the Letter is available for viewing at the following link:
The Letter is also included as an Exhibit in Horton's Schedule 13D, along with its December 16 Letter, March 3 Letter, Nomination Notice, and Nomination Withdrawal Notice.
About Horton Capital Partners Fund, LP
Horton Capital Partners Fund, LP is an investment firm making concentrated investments in undervalued and under-appreciated small and micro-capitalization public companies. The Fund seeks to identify value creation opportunities and work with management teams and Boards to enhance growth and shareholder returns.
Joe Manko (215) 399-5402
Damien Park (215) 325-0514
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SOURCE Horton Capital Partners Fund, LP