Beaver Hollow Wellness urges Servotronics shareholders to vote for its nominees

Beaver Hollow Wellness, the largest shareholder of Servotronics (SVT),, owning 15.2% of the outstanding shares, issued a “dire warning” about the Company’s future under its current Board of Directors. The firm said, “Continuing a pattern of bad faith, obstruction, and brazen disregard for fiduciary responsibility, the Board’s secrecy and defiance, if left unchecked, may ultimately lead to the collapse of Servotronics’ operations in Western New York – putting hundreds of local jobs at risk, destroying shareholder value and threatening the economic viability of one of the region’s last remaining advanced manufacturers. While Servotronics issued a press release for Q1 2025, touting a modest quarterly profit and operational turnaround, a closer review of the Company’s financial filings paints a far different picture-one of financial distress, deteriorating liquidity, and structural instability. Key facts from the Company’s own 10-Q filing include: Cash from operations fell to negative $1.6 million – a $2 million deterioration from Q1 2024; Line of credit borrowing spiked 75% in a single quarter to $3.7 million; Unrestricted cash dropped to just $37,000; Interest expense rose nearly 17%, further straining profitability; and SG&A costs rose due to legal, proxy, and investment bank fees, not operational growth. This performance does not reflect a healthy or stable business. It reflects a management team attempting to obscure reality from shareholders while preparing a sale or dismantling of the Company without transparency or stakeholder input. The reported profit, driven by accounting maneuvering and one-time addbacks, does not signal sustainable financial health. ince 2022, BHW has continually pressed for improved transparency, accountability, and oversight from the Company’s directors. Instead, the Board has refused every reasonable offer to work collaboratively with its largest shareholder and inexplicably ignored BHW’s requests to examine corporate records – including those concerning a potential sale of the Company, while utilizing delay tactics in responding to lawful requests under Delaware General Corporation Law…The consequences of this betrayal are real: SVT’s Elma-based jobs and local manufacturing presence are on the brink. No explanation has been provided for the lack of operational turnaround or strategic direction, as was promised over a year ago. Employees remain in the dark about the future of their Company and their Careers…BHW calls on all shareholders – particularly SVT employees and retirees – to demand change now, before it’s too late.”