Maxwell Technologies Inc. (NASDAQ:MXWL), a leading developer and manufacturer of ultracapacitor-based energy storage and power delivery products, today announced that on March 11, 2016, it entered into a cooperation agreement with Viex Capital Advisors, LLC (“Viex”) under which Maxwell’s Governance and Nominating Committee will immediately commence a search for a new independent board member, mutually agreeable to Maxwell and Viex, to be appointed no later than 90 days following the date of the cooperation agreement. The Company has also agreed to submit a binding Board declassification proposal to a stockholder vote at the Company’s 2016 annual meeting of stockholders (the “2016 Annual Meeting”), which if approved by the Company’s stockholders, would result in the first annual election of directors with one-year terms at the Company’s 2017 annual meeting of stockholders (the “2017 Annual Meeting”).
The Maxwell Board has agreed to nominate two incumbent directors, Burkhard Goeschel and David Schlotterbeck, for re-election at the 2016 Annual Meeting as Class II directors. Upon the appointment of the new independent board member, the Maxwell Board has agreed to increase its size from eight to nine members. In the event that the resulting Board vacancy remains unfilled by December 31, 2016, and if Viex continues to beneficially own a net long position of at least three percent of Maxwell’s common stock, an additional independent director, mutually agreed upon by both parties, will be appointed to the Board. Immediately following the conclusion of the 2017 Annual Meeting, the Maxwell Board has agreed to cause the Board to be reduced to eight members.
“We are pleased to have reached this agreement with Viex, as we believe this outcome serves the best interests of the Company and all Maxwell stockholders. We have appreciated Viex’s input into our business and the constructive dialogue we have had with Viex’s founder, Eric Singer,” said Dr. Franz Fink, Maxwell’s president and chief executive officer. “Our Board and management team remain laser-focused on implementing our global restructuring initiatives to reduce expenses, drive growth and create stockholder value. We look forward to adding a new, highly-qualified, independent director to our Board to help oversee the continued successful execution of our strategic plan.”
Eric Singer, the Founder and Managing Member of Viex, said, “Our investment in Maxwell reflects our confidence in the Company’s technologies, strategy, and management team. We believe management is taking the right steps to extend Maxwell’s position as a leader and innovator in the energy storage space. We appreciate Maxwell’s receptiveness to stockholder ideas and our recommendations to enhance stockholder value, and are pleased we were able to reach this cooperation agreement.” (Original Source)
Shares of Maxwell Technologies closed last Friday at $6.13, up $0.13 or 2.17%. MXWL has a 1-year high of $8.49 and a 1-year low of $4.06. The stock’s 50-day moving average is $6.12 and its 200-day moving average is $6.17.
On the ratings front, Canaccord Genuity analyst Jonathan Dorsheimer reiterated a Hold rating on MXWL, with a price target of $5.50, in a report issued on February 16. The current price target reflects a potential downside of -10.3% from last closing price. According to TipRanks.com, Dorsheimer has a total average return of -3.6%, a 42.2% success rate, and is ranked #3274 out of 3724 analysts.
Maxwell Technologies Inc develops, manufactures and markets energy storage and power delivery products for transportation, industrial, information technology and other applications and microelectronic products for space and satellite applications.