New York, New York, August 6, 2015 — Today, Zarvic Brothers released the following open letter to stockholders and board of directors of Metalico Inc.
August 6, 2015
After careful analysis and review of the Total Merchant buyout of Metalico Inc at a price of 60 cents per share. Zarvic Brothers has concluded this does not enhance the position of the shareholders economically. Zarvic Brothers has communicated with a group that is interested to acquire select Metalico locations.
Zarvic Brothers feels the 60 cents a share offer by Total Merchant is not in the best interest to shareholders. Zarvic Brothers feels the buyout of Metalico leaves a few questions. Was metalico shopped to a large amount of buyers to ensure shareholders receive the highest value?
Zarvic Brothers feels the value of Metalico is worth more than 60 cents per share based on a few components. Zarvic has communicated with a potential buyer that would be interested in select Metalico locations. With actual interest to acquire Metalico locations and to spin those locations off piece by piece would help reduce debt and add value to the company. Zarvic sees a higher value in Metalico by breaking the company up by selling assets, and locations, combined with restructuring the board, and restructuring the business model to create greater total value to shareholders.
In Zarvic's opinion the total of each location combined of real estate and business operations is worth more than the 60 cents per share offer by Total Merchant.
Metalico's current board paid a financial advisory group that deals in distressed assets a large sum of money to assist the company in restructuring efforts that has provided no added value to shareholders.
Zarvic's opinion is spinning off select Metalico locations, restructuring the current board and restructuring the current business model as well as shopping Metalico to another buyer would enhance shareholders value beyond the current 60 cent per share buyout by Total Merchant.
Nicholas Stirpe Jr.
Cautionary Statement Regarding Forward-Looking Statements:
The information herein contains "forward-looking statements." Specific forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and include, without limitation, words such as "may," "will," "expects," "believes," "anticipates," "plans," "estimates,""projects," "targets," "forecasts," "seeks," "could," "should" or the negative of such terms or other variations on such terms or comparable terminology. Similarly, statements that describe our objectives, plans or goals are forward-looking. Forward-looking statements are subject to various risks and uncertainties and assumptions. There can be no assurance that any idea or assumption herein is, or will be proven, correct. If one or more of the risks or uncertainties materialize, or if Zarvic's underlying assumptions prove to be incorrect, the actual results may vary materially from outcomes indicated by these statements. Accordingly, forward-looking statements should not be regarded as a representation by Zarvic that the future plans, estimates or expectations contemplated will ever be achieved.
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