Moreover, Mr. Zyngier has made a substantial restricted equity investment in Veltex. Mr. Zyngier commented "Veltex completely fits our model for investment – an undervalued equity with sizable complex legal structures and with meaningful opportunities to growth. Veltex also has a talented management team that wanted to partner with us, which makes this a perfect fit. We look forward to this partnership and working with Veltex's management team to continue building on what they have done to date." Most importantly Mr. Zyngier reported, "At Batuta, we follow our own proprietary due diligence process to uncover investment and strategic opportunities. We also bring additional strategic equity capital from our investor network, to partner-up and add value to the businesses we invest in, and use our broad fixed-income network to complement these investments. Again, Veltex fits our model perfectly."
Mr. Zyngier founded Batuta Capital to pursue investment and advisory opportunities in the distressed and turnaround sectors. Mr. Zyngier has over 20 years of investment, strategy, and operating experience. He currently serves on the boards of directors of Atari SA, AudioEye Inc. (AEYE), GT Advanced Technologies, Inc., Torchlight Energy Resources Inc. (TRCH) and was previously Chairman of the Board of Vertis Inc., a director of Island One LLC and Executive Chairman of DTV America Corporation. Mr. Zyngier has worked as a Portfolio Manager, investing in public and private opportunities, at Alden Global Capital, Goldman Sachs & Co., Deutsche Bank Co. and as a sell-side distressed and event-driven analyst at CRT Capital Group. He was also a strategy consultant at McKinsey & Company. Prior to that, he was a technical brand manager at Procter & Gamble, focused on Latin America Beauty Care Products.
Mr. Zyngier holds an MBA in Finance and Accounting from the University of Chicago and a BSc. in Chemical Engineering from UNICAMP in Brazil.
James "Jim" Jacob, President and CEO of Veltex stated "Following a detailed evaluation over the past several months, we have determined that it is prudent to undertake a review of our strategic options to determine which alternative or alternatives, including our stand-alone plans, are in fact the best way to maximize shareholder value. Management along with a unanimous board approval determined that the retention of and partnering with Batuta Capital was a strong move at the right time and in the right direction." Mr. Jacob stated further "The Board of Directors for Veltex has determined that it is in the best interest of its shareholders to consider itself a possible acquisition target, at a minimum, to a strategic company that possesses the necessary resources to invest in and capitalize on the significant potential asset value of Veltex's current booked NOL carry forwards and value in the current legal judgments of approximately $150 million dollars."
The Company is committed to conducting its review of potential alternatives as promptly as practicable. However, there can be no assurances that any particular alternative will be pursued or that any transaction will occur, or on what terms or as to its timing. Veltex intends to provide additional information as appropriate.
Veltex Corporation, incorporated in Utah September 17, 1987, is a public holding corporation which maintains its corporate headquarters in Chicago, Illinois. The company's common shares trade OTC Markets under the symbol VLXC.
Safe Harbor Statement
Certain of the above statements contained in this press release are forward-looking statements that involve a number of risks and uncertainties. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those indicated in the forward-looking statements as a result of various factors. This press release includes forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by phrases such as Veltex or its management "believes," "expects," "anticipates," "foresees," "forecasts," "estimates" or other words or phrases of similar import. Similarly, statements herein that describe Veltex's business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those in forward-looking statements.
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SOURCE Veltex Corporation