#United States #Jacksonville #Water Street Capital #REC Silicon #Hanwha

Water Street Capital Highlights Shareholder Challenges at REC Silicon

Water Street Capital, Inc. has made a significant statement regarding its position on REC Silicon, a company in which it holds a stake. This private investment firm, known for its long-term, value-oriented approach, emphasizes its commitment to maximizing shareholder value for all holders of REC Silicon stock. The firm has been actively working towards electing a new board of directors, believing this would demonstrate the presence of potential acquirers for REC's Moses Lake and Butte facilities. In essence, Water Street aims to ensure that the true value of the company is recognized, especially in light of what they describe as a low-ball offer from Anchor AS.

However, the challenges facing the newly elected REC board have been significant, particularly due to restrictions imposed by Hanwha, a major stakeholder. According to Water Street's insights, Hanwha has limited REC's ability to seek external financing and explore alternative offers fully. This lack of flexibility has profound implications not only for the board's capacity to maximize shareholder value but also for the overall future of the company.

In a previous meeting held on July 7, 2025, the board acknowledged that Hanwha had not taken steps to free them from these restrictions. Instead, Hanwha reserved the right to pursue legal action against members of the board if they perceived a failure to comply with their obligations. Water Street Capital argues that this looming legal threat has significantly hindered the board from fulfilling its duties, including their responsibility to act in the best interest of all shareholders.

The investment firm aligns itself with the board's sentiment that the current offer on the table does not accurately reflect the underlying value of REC Silicon. They believe that the unrecognized potential of the company's assets, combined with the growth prospects in the alternative energy industry, underscores a much higher value than what Anchor AS has proposed.

In light of these events, Water Street Capital has voiced its concerns regarding the treatment of all shareholders involved in this situation. The firm emphasizes that the challenges presented not only undermine the board's decisions but also affect investor confidence and the long-term viability of REC Silicon as it navigates through these turbulent waters.

As the situation develops, the responses from both REC Silicon's board and Hanwha are expected to play crucial roles in determining the path forward for shareholders. Investors will be watching closely to see if collaborative solutions can be reached that honor the interests of all parties involved. Water Street Capital remains vocal about its commitment to achieving what it perceives as rightful shareholder value for REC Silicon's stakeholders. The saga continues as the implications of this internal struggle unfold, potentially paving the way for changes in corporate governance and strategic direction within the company.

This narrative underscores the complexities of shareholder dynamics in a corporate environment, showcasing the sometimes contentious relationships between investment firms and major stakeholders. In the coming months, as REC Silicon grapples with these challenges, it will be essential for all parties to engage constructively to ensure the best outcomes for the future of the company and its shareholders.