Star Equity issues statement on campaign at Superior Drilling

Star Equity Fund, an approximate 10% shareholder of Superior Drilling Products, announced a successful conclusion to its campaign at SDPI. Under pressure from our campaign, the Company announced its sale to Drilling Tools International on March 7, 2024. Details of the transaction, which was unanimously approved by the Boards of both DTI and SDPI and a Special Committee of the Board of SDPI, are available in the Form S-4 filed with the SEC on May 10, 2024. The transaction is expected to close in the third quarter of 2024. Star Equity said, “We do not believe SDPI’s Board of Directors would have put the Company up for sale had we not encouraged them to do so beginning in 2022. In our open letters to the Company’s Board, issued in 2022 and again in 2023, we insisted that remaining a small public company would be a poor outcome for SDPI shareholders given the Company’s high SG&A expenses, including management compensation and public-company costs, as a percentage of revenue…. We believe the Company made the right decision to sell itself and we support the transaction with DTI. Therefore, we will vote FOR the sale and we look forward to becoming DTI shareholders. We believe this sale to DTI best aligns with our goals of maximizing value for all SDPI shareholders and creating a thriving, well-regarded Company where customers, employees, and shareholders all benefit from its products, services, and overall presence in the marketplace… While we are pleased that our campaign led to a positive outcome for SDPI shareholders, we are very disappointed with the SDPI Board’s handling of the sale process, especially the SDPI Special Committee consisting of directors Lines, Ronca, and Iverson. “