Lemelson Capital Management calls for Removal of Geospace Technologies (NASDAQ: GEOS) Senior Executives, Sale of Company

MARLBOROUGH, Mass., Feb. 9, 2018 /PRNewswire/ -- Lemelson Capital Management, LLC, a private investment management firm, announced today it is calling on the board of directors of the company to remove CEO Rick Wheeler and CFO Thomas McEntire of Geospace Technologies (NASDAQ: GEOS), In addition, it is urging the board to explore an immediate sale of the company. Geospace is a global leader in the design and manufacture of instruments and equipment used by the oil and gas industry

The full letter can be found here:  https://www.scribd.com/document/371138934/Lemelson-Capital-Management-calls-for-Removal-of-Geospace-Technologies-NASDAQ-GEOS-Senior-Executives-Sale-of-Company?secret_password=BVAo1ALx4rrMOdePcKiL

"CEO Rick Wheeler and CFO Tom McEntire have recently and knowingly allowed the filing of a materially misleading form 8-K with the Securities and Exchange Commission (SEC), failed to design and maintain controls over financial reporting, and allowed dysfunction and incompetence to lead to the loss of major contracts," said Fr. Emmanuel Lemelson, Chief Investment Officer of Lemelson Capital Management.

Geospace Technologies stock price recently hit a new 52-week low, plummeting nearly 90 percent since Mr. Wheeler took over as CEO in January 2014, despite the extraordinary industry-wide recovery in the oil and gas sector which has led to the stock price of several of the company's competitors recently achieving new 52-week highs. In addition, the decision by Statoil (STO), one of the world's oil and gas majors, to stop using Geospace's services underscores the failures of current management, and places at risk what should be a shoe-in win of the PRM contract for Petrobas' (PBR) giant Roncador field expected in 2018.¹

"We believe that given the company's vast unencumbered assets and market-leading technology, Geospace stock is worth at least $38 per share today,"² Lemelson continued.   "To allay the legitimate concerns and uncertainty now flooding the marketplace and provide much needed transparency, we are calling on the board to immediately correct all public filings with the SEC, and to remove Mr. Wheeler and Mr. McEntire for breaching their fiduciary responsibilities and for violating securities laws and regulations. In addition, we ask that the board immediately engage an investment bank to explore a sale of the company," Lemelson added.

Disclosure:  Lemelson Capital Management, LLC owns approximately 10 percent of the outstanding shares of Geospace Technologies stock for its client.

About Lemelson Capital Management
Lemelson Capital Management, LLC is a private investment management firm focused on deep value and special situation investments.  For more information, see: http://www.lemelsoncapital.com

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SPECIAL NOTE REGARDING THIS RELEASE

THIS REPORT INCLUDES INFORMATION BASED ON DATA FOUND IN FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION, INDEPENDENT INDUSTRY PUBLICATIONS AND OTHER SOURCES. ALTHOUGH WE BELIEVE THAT THE DATA IS RELIABLE, WE HAVE NOT SOUGHT, NOR HAVE WE RECEIVED, PERMISSION FROM ANY THIRD-PARTY TO INCLUDE THEIR INFORMATION IN THIS PRESENTATION. MANY OF THE STATEMENTS IN THIS PRESENTATION REFLECT OUR SUBJECTIVE BELIEF.

EMMANUEL LEMELSON'S VIEWS AND HIS HOLDINGS OF THE SECURITIES MENTIONED IN THIS RELEASE COULD CHANGE AT ANY TIME. HE MAY SELL ANY OR ALL OF HIS HOLDINGS OR INCREASE HIS HOLDINGS BY PURCHASING ADDITIONAL SECURITIES. HE MAY TAKE ANY OF THESE OR OTHER ACTIONS REGARDING ANY OF SUCH SECURITIES WITHOUT UPDATING THIS RELEASE OR PROVIDING ANY NOTICE WHATSOEVER OF ANY SUCH CHANGES.

THE INFORMATION CONTAINED ABOVE IS NOT AND SHOULD NOT BE CONSTRUED AS INVESTMENT ADVICE, AND DOES NOT PURPORT TO BE AND DOES NOT EXPRESS ANY OPINION AS TO THE PRICE AT WHICH THE SECURITIES OF GEOSPACE TECHNOLOGIES MAY TRADE AT ANY TIME. THE INFORMATION AND OPINIONS PROVIDED ABOVE SHOULD NOT BE TAKEN AS SPECIFIC ADVICE ON THE MERITS OF ANY INVESTMENT DECISION. INVESTORS SHOULD MAKE THEIR OWN DECISIONS REGARDING GEOSPACE TECHNOLOGIES AND ITS PROSPECTS BASED ON SUCH INVESTORS' OWN REVIEW OF PUBLICALLY AVAILABLE INFORMATION AND SHOULD NOT RELY ON THE INFORMATION CONTAINED ABOVE. NEITHER LEMELSON CAPITAL MANAGEMENT, LLC NOR ANY OF ITS AFFILIATES ACCEPTS ANY LIABILITY WHATSOEVER FOR ANY DIRECT OR CONSEQUENTIAL LOSS HOWSOEVER ARISING, DIRECTLY OR INDIRECTLY, FROM ANY USE OF THE INFORMATION CONTAINED ABOVE.

FORWARD-LOOKING STATEMENTS

Certain statements contained in this letter are forward-looking statements including, but not limited to, statements that are predications of or indicate future events, trends, plans or objectives. Undue reliance should not be placed on such statements because, by their nature, they are subject to known and unknown risks and uncertainties. Forward-looking statements are not guarantees of future performance or activities and are subject to many risks and uncertainties. Due to such risks and uncertainties, actual events or results or actual performance may differ materially from those reflected or contemplated in such forward-looking statements. Forward-looking statements can be identified by the use of the future tense or other forward-looking words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," "should," "may," "will," "objective," "projection," "forecast," "management believes," "continue," "strategy," "position" or the negative of those terms or other variations of them or by comparable terminology.  Important factors that could cause actual results to differ materially from the expectations set forth in this letter include, among other things, the factors identified under the section entitled "Risk Factors" in Geospace Technologies Annual Report on Form 10-K for the year ended September 30, 2017. Such forward-looking statements should therefore be construed in light of such factors, and Lemelson Capital is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

¹ Given the divestiture of PGS's PRM business and the fact that Nokia is likely at full capacity, the loss of any of the 8 fields in the portfolio Petrobras has designated for PRM systems would be indefensible

² See "Lemelson Capital Management announces 10 percent stake in Geospace Technologies (NASDAQ: GEOS), urges immediate share repurchase," December 1, 2017 (click here to access a copy).

SOURCE Lemelson Capital Management, LLC

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