World Energy appoints new board members following investor's request
Worcester-based energy procurement firm World Energy Solutions said it has appointed two new, independent members to its board of directors, increasing the size of the board from five to seven members, under an agreement with its investor, asset management firm Ardsley Advisory Partners.
Joining the World Energy Board of Directors are Peter A. Londa and Sean S. Sweeney. The company’s agreement with Connecticut-based Ardsley also provides for the board’s nomination of a third independent member in conjunction with the company’s 2014 annual meeting.
World Energy said it also agreed to form a Strategic Alternatives Committee to work with company advisors on plans to “enhance the company’s revenue and value.”
Board member John Wellard has agreed to step down to make way for the third new member’s nomination at the annual meeting.
Meanwhile, Ardsley has agreed to customary standstill provisions, which limit the amount of stock it can buy from World Energy.
Ardsley, which said it owned 7.5 percent of World Energy’s stock at the end of 2013, wrote a letter late last year requesting that World Energy appoint new board members, get out of the energy efficiency business and explore selling the company.
World Energy's cash reserves fell from $6.52 million in fall 2011 to $2.52 million in fall 2013, due largely to costs associated with the purchase of Northeast Energy Solutions, which Ardsley contends was a mistake.
“It was in the best interests of the company and all of its stockholders to reach an agreement with Ardsley prior to the nomination deadline for the 2014 annual meeting,” World Energy Chairman Edward Libbey said in a statement.
A spokesman for World Energy declined to comment further for this story.
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