Ademi LLP is investigating Trecora (NYSE: TREC) for possible breaches of fiduciary duty and other violations of law in its transaction with Balmoral.
Ademi LLP alleges Trecora’s financial outlook and prospects are excellent and yet Trecora holders will receive only $9.81 per share in cash in a transaction that values Trecora at an enterprise value of $247 million. The transaction agreement unreasonably limits competing bids for Trecora by prohibiting solicitation of further bids, and imposing a significant penalty if Trecora accepts a superior bid. Trecora insiders will receive substantial benefits as part of change of control arrangements.
We are investigating the conduct of Trecora’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 Trecora.