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Ortelius founder Peter DeSorcy criticized how the company has
previously spent capital and said there are many ways to boost
Trecora's lagging share price, including "organic, corporate
finance, inorganic and strategic alternatives solutions."
Several activist shareholders are pushing U.S. corporations
ranging from retailer Kohl's to exercise equipment maker Peloton
to consider a sale as dealmaking is expected to remain strong
this year following a record-breaking 2021.
In the letter to fellow shareholders, DeSorcy called Trecora's
stock price "consistently abysmal" and said he does not believe
the current seven board members can make the right decisions for
the company.
"Incremental change - such as adding one or two new directors to
the board - is woefully insufficient to reverse a culture that
lacks accountability," DeSorcy wrote in the letter.
A Trecora representative was not immediately available for
comment.
Ortelius is Trecora's biggest investor with an 11.3% stake in
the Sugar Land, Texas-headquartered company. Activist investor,
Bradley Radoff, a former executive at Third Point, is also a
large investor in Trecora and last year made a 13D filing which
often hints at a proxy battle or even an acquisition.
Ortelius nominated executives with chemical industry expertise,
restructuring experience, and investment management expertise.
In the letter DeSorcy underscored Trecora's strengths, including
first-class facilities and excess capacity, but said some $183
million in investments, made between 2014 and 2018, had "no
discernible impact on the company's financials."
In 2021, Trecora's stock price gained 15% but lagged the broader
Russell 3000 Index which climbed 25.6% last year. Over the last
five years, Trecora's stock price has fallen 33.52%.
(Reporting by Svea Herbst-Bayliss; editing by Diane Craft)
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