AUSTIN, Texas, Sept. 30, 2013 /PRNewswire/ -- Westech
Capital Corp. (WTEC:PK) announced today that it received from the
independent inspector of election, a preliminary tabulation of the
votes cast at the annual meeting of stockholders held on
September 17, 2013 to elect directors
and ratify the appointment of PMB Helin Donovan LLP as the
Company's independent auditor. The preliminary tabulation is
subject to final tabulation and certification by the independent
inspector of election. Although the Company expects that the
appointment of PMB Helin Donovan LLP as the Company's independent
auditor will be ratified, the Company expects that a proceeding
before the Delaware Court of
Chancery will be necessary to finally determine the outcome of the
election of directors at the annual meeting.
Prior to the resignation of John J.
Gorman, IV, the board of directors of Westech consisted of
John J. Gorman, IV, Peter Monaco, Gary L.
Salamone, Robert W. Halder,
and Michael F. Dura, each of whom
was elected to the Company's board of directors in accordance with
the terms and conditions of the Voting Agreement between the
Company and certain of its stockholders. After the
resignations of Messrs. Gorman and Monaco, litigation was filed in
the Delaware Court of Chancery
challenging certain actions allegedly taken to remove and replace
certain members of the board of directors. An Order
Maintaining the Status Quo was entered by such court providing that
the Company's board of directors consisted of Messrs. Salamone,
Halder and Dura during the pendency of the litigation.
Consistent with the nomination procedures of the Voting
Agreement, the Company's board of directors nominated Messrs
Salamone, Halder and Dura, as well as Michael Wolf and Mark
McMurrey, for election to the board of directors at the
annual meeting. Mr. Gorman nominated himself, Barry Williamson, Greg
Woodby, T.J. Ford,
Barry A. Sanditen, Daniel K. Olsen and Gary
L. Salamone for election to the board of directors at the
annual meeting. Other than the nomination of Mr. Salamone,
the Company believes that the nominations made by Mr. Gorman did
not comply with the Voting Agreement. Because the nominations
made by Mr. Gorman did not comply with the Voting Agreement, the
Company believes that the votes cast in favor of Mr. Gorman's
nominees at the annual meeting are invalid, resulting in the
election of the Company's nominees to the board of directors at the
annual meeting.
Gary Salamone, Chief Executive
Officer of the Company, stated: "As we await the final tabulation
of votes, the Board and management of the Company wish to thank the
many shareholders who have expressed support for our current
Board. We will continue to manage the Company for the benefit
of all of our stockholders, and we will continue to ensure that the
Company complies with its commitments made to stockholders under
the Voting Agreement. We look forward to a swift resolution
of this dispute and to continue to work constructively for the
benefit of all stockholders."
Company Information
Westech Capital Corp., formerly Tejas Incorporated, is a
financial services holding company. Its primary business operating
subsidiary is Tejas Securities Group, Inc. Tejas Securities
Group, Inc. is an independent Broker-Dealer founded in 1994 with
offices in Austin, TX, and
New York City, N.Y.
Safe Harbor Statement
This press release contains forward-looking statements within
the meaning of federal securities laws. Actual results are subject
to risks and uncertainties, including both those specific to the
Company and those specific to the industry, which could cause
results to differ materially from those contemplated. The risks and
uncertainties include, but are not limited to, general economic
conditions, actions of competitors, changes in legislation, and
technology changes. Undue reliance should not be placed on the
forward-looking statements, which speak only as of the date of this
press release. There are many important factors beyond the
control of the Company's management that could cause actual results
to differ materially from such forward-looking statements.
The Company does not undertake any obligation to publicly
update any forward-looking statements.
SOURCE Westech Capital Corp.