WHAT IS SERVOTRONICS HIDING? Servotronics on Financial Life Support: BHW Uncovers Massive Cash Burn, Secretive Board Conduct, and Imminent Risk to Shareholder Value
WHAT IS SERVOTRONICS HIDING? Servotronics on Financial Life Support: BHW Uncovers Massive Cash Burn, Secretive Board Conduct, and Imminent Risk to Shareholder Value |
| [13-May-2025] |
Drastic Change is Needed At Servotronics Today to Safeguard the Interests of Shareholders, Employees and Customers Beaver Hollow Wellness Urges Shareholders to Vote the WHITE Proxy Card "FOR" Its Four Highly Qualified Director Nominees and "WITHHOLD" on all Company Nominees except for Karen L. Howard ELMA, N.Y., May 13, 2025 /PRNewswire/ -- Beaver Hollow Wellness, LLC ("BHW"), the largest shareholder of Servotronics, Inc. (NYSE American – SVT, "Servotronics" or the "Company"), owning 15.2% of the outstanding shares, today issued a dire warning about the Company's future under its current Board of Directors. Continuing a pattern of bad faith, obstruction, and brazen disregard for fiduciary responsibility, the Board's secrecy and defiance, if left unchecked, may ultimately lead to the collapse of Servotronics' operations in Western New York — putting hundreds of local jobs at risk, destroying shareholder value and threatening the economic viability of one of the region's last remaining advanced manufacturers. The Financial Truth Behind Servotronics' Spin Key facts from the Company's own 10-Q filing include:
This performance does not reflect a healthy or stable business. It reflects a management team attempting to obscure reality from shareholders while preparing a sale or dismantling of the Company without transparency or stakeholder input. The reported profit, driven by accounting maneuvering and one-time addbacks, does not signal sustainable financial health. Since 2022, BHW has continually pressed for improved transparency, accountability, and oversight from the Company's directors. Instead, the Board has refused every reasonable offer to work collaboratively with its largest shareholder and inexplicably ignored BHW's requests to examine corporate records — including those concerning a potential sale of the Company, while utilizing delay tactics in responding to lawful requests under Delaware General Corporation Law (§ 220). "For 100 days, the Board has acted in secret and in defiance of its obligations to shareholders, employees and customers," said Paul L. Snyder III, Managing Member of BHW. "Their refusal to disclose critical information and unwillingness to meet with the Company's largest shareholder sends a chilling signal: this Board is either covering up incompetence or actively preparing to dismantle the Company behind closed doors. Either outcome would be catastrophic for Western New York." The consequences of this betrayal are real:
"This is not just corporate negligence — it's a slow-motion liquidation of Servotronics' legacy, carried out by a Board that seems more committed to hiding the truth than saving the Company," Snyder continued. BHW calls on all shareholders — particularly SVT employees and retirees — to demand change now, before it's too late. Vote FOR the election of Paul L. Snyder III, Christine R. Marlow, Michael W. Dolpp and Charles C. Alfiero on the WHITE proxy card to restore independent oversight, protect jobs, and give this Company a future. For more information, visit www.SaveServotronics.com Media Contacts Michael P. Hughes Masiello Martucci Hughes (716) 983-3731 Kevin Keenan Investor Contact SOURCE Beaver Hollow Wellness | ||
Company Codes: AMEX:SVT |
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