COLUMBUS, Ohio, March 31, 2021 /PRNewswire/ -- Core Molding Technologies, Inc. (NYSE American: CMT) today announced that its board of directors voted to accelerate the expiration of the company's stockholder rights plan to March 31, 2021 to further enhance the company's corporate governance profile. The stockholder rights plan was originally scheduled to expire on April 20, 2021. Stockholders do not have to take any action as a result of this accelerated termination.
The decision to accelerate the expiration of the stockholder rights plan was the result of careful analysis including input from corporate governance experts. The plan was adopted in April of 2020 to protect against any potential future use of coercive or abusive takeover techniques and to help ensure that the Company's stockholders were not deprived of the opportunity to realize the full and fair value of their investment. In adopting the plan, the Board had taken note of the unprecedented impact of the COVID-19 pandemic on the Company, including in the Company's stock price, the substantial increase in trading volume and market volatility, and the significant impact the pandemic had across the manufacturing industry. At the time of adoption of the plan the Company's stock price was trading at approximately $2.90 per share. Shares currently trade at approximately $11.75 per share, an approximate 300% increase.
"The acceleration of the expiration of the stockholder rights plan demonstrates the Board's commitment to best corporate governance practices. Our decision incorporates valuable shareholder feedback, while ensuring that we have appropriate measures and policies in place to manage our business effectively," said David L. Duvall, president and chief executive officer.
About Core Molding Technologies, Inc.
Core Molding Technologies is a manufacturer of sheet molding compound ("SMC") and molder of thermoset and thermoplastic products. The Company operates in one operating segment as a molder of thermoplastic and thermoset (plastic) structural products. The Company's operating segment consists of two component reporting units, Core Traditional and Horizon Plastics. The Company produces and sells molded products for varied markets, including medium and heavy-duty trucks, automobiles, marine, construction and other commercial markets. The Company offers customers a wide range of manufacturing processes to fit various program volume and investment requirements. These processes include compression molding of SMC, bulk molding compounds ("BMC"), resin transfer molding ("RTM"), liquid molding of dicyclopentadiene ("DCPD"), spray-up and hand-lay-up, direct long-fiber thermoplastics ("D-LFT") and structural foam and structural web injection molding ("SIM"). Core Molding Technologies has its headquarters in Columbus, Ohio, and operates production facilities in Columbus, Ohio; Gaffney, South Carolina; Winona, Minnesota; Matamoros and Escobedo, Mexico; and Cobourg, Ontario, Canada. For further information, visit the company's website at www.coremt.com.
Chief Financial Officer
SOURCE Core Molding Technologies, Inc.