Ademi LLP is investigating Surrey (OTCPK: SRYB) for possible breaches of fiduciary duty and other violations of law in its transaction with First Community.
Ademi LLP alleges Surrey’s financial outlook and prospects are excellent and yet Surrey holders will receive only 0.7159 shares of First Community common stock, which equates to $26.95 per share of Surrey common stock and an aggregate transaction value of approximately $113.2 million based on First Community’s recent 10-day volume-weighted average price. The transaction agreement unreasonably limits competing bids for Surrey by imposing a significant penalty if Surrey accepts a superior bid. Surrey insiders will receive substantial benefits as part of change of control arrangements.
We are investigating the conduct of Surrey’s board of directors, and whether they are (i) fulfilling their fiduciary duties to all shareholders, and (ii) obtaining a fair and reasonable price for Surrey.