JERSEY CITY, N.J., July 26, 2017 (GLOBE NEWSWIRE) -- SITO Mobile, Ltd. (NASDAQ:SITO), a leading mobile engagement platform (“SITO” or the “Company”), today issued the following statement in response to the 13D/A filing (the “Singer 13D/A”) made on behalf of Karen Singer, Gary Singer, and certain of their affiliates (collectively, the “Singer Group”) that included material erroneous misstatements.
The full text of the statement is as follows:
SITO welcomes open communications with all of its shareholders, including the Singer Group, and values all input and suggestions that may advance the Company’s goal of enhancing shareholder value. While the Company generally does not comment on discussions with shareholders, in light of comments made within the Singer Group’s recent Schedule 13D/A filing, the Company believes it must correct several inaccurate allegations and misstatements made by the Singer Group.
Over the past month, the Board and management have made many attempts to engage constructively with the Singer Group during a series of meetings with Gary Singer. Unfortunately, during these conversations it became clear to management that the Singer Group’s economic interests as Company creditor are not aligned with the best interests of the Company’s shareholders. Mr. Singer openly expressed that unless certain management composition changes were made, the Singer Group would take actions that would potentially eviscerate shareholder value and cause irreparable damage to our corporate franchise. Indeed, Mr. Singer’s threats were a strong motivating factor in the Company’s decision to enter into its recently announced equity offering, as a means of retiring SITO debt held by the Singer Group and reducing its influence over the Company.
Further and contrary to statements made within the Singer 13D/A, at no time during any interactions between the Singer Group and the Company has any member of the Singer Group made an offer to refinance or restructure SITO’s secured note held by the group without making such offer expressly contingent on destructive changes to management.
We caution investors not to rely on the views described in the Singer Schedule 13D/A as such views both demonstrate that the Singer Group does not understand the terms of the management compensation packages, and fails to consider threats made by Mr. Singer to take actions that would be ruinous for shareholders.
It is displeasing that the Singer Group has failed to acknowledge the transparency and flexibility management has demonstrated in its willingness to listen and communicate with them, and instead decided to mislead shareholders and publicly defame our Chairman. Regardless, the Board is committed to carefully considering the concerns of the Singer Group as shareholders and debtholders. SITO remains focused on driving long-term value for all shareholders and hopes to continue to maintain a constructive dialogue with all shareholders, including the Singer Group.
SITO’s Board of Directors and management team are committed to acting in the best interests of all shareholders. The Board takes its fiduciary responsibilities to shareholders seriously, and will always consider and evaluate opportunities to drive enhanced value. We thank you for your investment in SITO.
About SITO Mobile Ltd.
SITO Mobile provides a mobile engagement platform that enables brands to increase awareness, loyalty, and ultimately sales. For more information, visit www.sitomobile.com.
Cautionary Statement Regarding Certain Forward-Looking Information
This press release contains forward-looking statements. These statements are based on our management’s beliefs and assumptions and on information currently available to our management. Forward-looking statements include statements concerning the following: SITO’s plans and initiatives, campaign volume and average campaign dollars, our guidance and/or expectations for future quarters, our possible or assumed future results of operations; our business strategies; our ability to attract and retain customers; our ability to sell additional products and services to customers; our competitive position; our industry environment; our potential growth opportunities; and risks, disruption, costs and uncertainty caused by or related to the actions of activist shareholders, including that if individuals are elected to our Board with a specific agenda or if control of our Board was to abruptly change, it may adversely affect our ability to effectively implement our business strategy and create value for our shareholders and perceived uncertainties as to our future direction as a result of potential changes to the composition of our Board may lead to the perception of a change in the direction of our business, instability or a lack of continuity which may be exploited by our competitors, cause concern to our current or potential customers, and may result in the loss of potential business opportunities and make it more difficult to attract and retain qualified personnel and business partners. You should not place undue reliance on forward-looking statements, because they involve known and unknown risks, uncertainties and other factors, which are, in some cases, beyond our control and which could materially affect results. Factors that may cause actual results to differ materially from current expectations include, among other things, those listed under “Risk Factors” in our Annual Report on Form 10-K and the reports we file with the SEC. Actual events or results may vary significantly from those implied or projected by the forward-looking statements due to these risk factors. No forward-looking statement is a guarantee of future performance. You should read our Annual Report on Form 10-K and the documents that we reference in our Annual Report on Form 10-K and have filed as exhibits thereto with the Securities and Exchange Commission, or the SEC, with the understanding that our actual future results and circumstances may be materially different from what we expect. Forward-looking statements are made based on management’s beliefs, estimates and opinions on the date the statements are made and we undertake no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as may be required by applicable law. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.