Crown Electrokinetics urges shareholders to vote for Proxy Statement proposals

Crown Electrokinetics released a letter to its shareholders, which read in part, “Crowns annual Proxy Statement was filed on Friday in advance of the Company’s annual shareholder meeting which is scheduled for August 11th, 2023. I wanted to provide you with an update and context for the Proxy Statement proposals which require your supporting votes. A few months ago, we started the process of restructuring and aligning our capital base to enable Crown to take advantage of the customer wins we were experiencing on the Fiber Optic side of our business. We announced recently that Crown had significantly deleveraged its balance sheet. We have now successfully eliminated 95% of the Company’s outstanding debt which, as we stated previously, included highly restrictive covenants preventing Crown from raising capital under certain circumstances. With this deleveraging now nearly completed, we are able to pursue multiple paths for aligning our capital base with customer contracts which we believe, should allow our shareholders to realize the value of Crown’s customer contract wins. This includes the pursuit of various equity financing options, with a focus on capital formation flexibility. In addition, the Company has simultaneously engaged in discussions with long-term debt-based financing partners about project-based funding for some of our announced Fiber Optics customer wins. We continue to share our capital formation plans with NASDAQ who have determined them to be critical for our continued listing on NASDAQ. Accordingly, the annual Proxy Statement includes a number of proposals which have facilitated the recent deleveraging, and which are also essential for the Company’s future path forward as discussed with NASDAQ. Finally, and importantly, we are also seeking shareholder approval in the Proxy Statement for a higher reverse split than the currently approved ratio. This again has been discussed and agreed with NASDAQ as being a critical aspect of the Company’s ongoing listing compliance plans.”