Committee Investigation Clears Tecnoglass Of Short Seller Allegations; Q1 Dividend Announced

Today, Tecnoglass (NASDAQ: TGLS) announced that the special committee of the Barranquilla, Colombia based company’s board of directors that was formed to assess the allegations in a short seller report issued on December 9, 2021 has completed its fact-finding assessment. Consistent with the allegations in the short seller report and as previously outlined, the special committee’s mandate was to: investigate whether transactions with certain related parties were not properly disclosed, identify and consider the controls associated with related party transactions, and assess the veracity of allegations in the short seller report of past law enforcement activity involving certain Tecnoglass officers.

While the committee focused only on the issues outlined above, they did not, during the course of its work, identify any evidence of fraud associated with the related-party transactions referenced in the short seller report.

The findings from the committee’s review have not resulted in an adverse effect on the company’s consolidated financial statements, results of operations, or liquidity for the fiscal year ended December 31, 2021 or other previously reported periods.

Investigators did not identify any accounting inconsistencies requiring restatements of previous financial statements.

Yesterday, the Company filed its 2021 Annual Report on Form 10-K with the US Securities and Exchange Commission in which Tecnoglass concluded that its internal controls over financial reporting were effective in providing reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A copy of the company’s Annual Report on Form 10-K and its independent auditor’s opinion is available on the SEC’s website.

José Manuel Daes, Chief Executive Officer of Tecnoglass, stated, “We have always been committed to doing business in the most ethical and transparent manner and complying with all applicable laws, and we are very pleased that this review by the Special Committee of the Board has concluded as it did, which allows us to focus exclusively on the business and on generating value for our shareholders.”

Tecnoglass also reaffirmed its full year 2022 outlook, as issued on March 3, 2022, for revenues to grow to a range of $575 million USD to $600 million and for adjusted EBITDA to increase to a range of $170 million to $190 million.

“We remain focused on executing on our business plan, leveraging our strong capital position, and our structural advantages that generated record results last year, to further extend our leadership in the architectural glass industry and drive improved returns for our all our stakeholders,” added Daes.

First Quarter 2022 Cash Dividend Announced

Yesterday the glass and aluminum products manufacturer also announced that its board of directors declared a quarterly cash dividend of $0.065 per share, or $0.26 per share on an annualized basis, for the first quarter of 2022. The dividend will be paid on April 29, 2022 to shareholders of record as of the close of business on March 31, 2022.

An adjusted EBITDA reconciliation table can be reviewed at https://investors.tecnoglass.com/news-releases/news-release-details/tecnoglass-reports-record-fourth-quarter-and-full-year-2021

Compiled from statements and press releases issued by Tecnoglass