Water Street Capital Comments on Results of REC Silicon Annual General Meeting

Rhea-AI Summary

Water Street Capital (8.26% stakeholder) has commented on REC Silicon's (OSL: RECSI) Annual General Meeting results, highlighting the appointment of five new board members and an investigation into Hanwha's terminated purchase contract.

The company's second-largest shareholder expressed concerns about Hanwha Solutions Corporation's threats to reassess operational funding if board control was lost. Water Street criticized the NOK2.20 offer from Anchor AS as significantly undervalued, stating shareholders weren't properly informed about the company's true value.

The newly appointed board will focus on maximizing value for all shareholders, with Water Street emphasizing its alignment with other investors' interests.

Positive

• Appointment of new board members focused on maximizing shareholder value
• Launch of investigation into Hanwha's contract termination circumstances
• Strong 8.26% ownership stake by Water Street Capital as second-largest shareholder

Negative

• Termination of Hanwha's 10-year purchase contract for Moses Lake facility polysilicon
• Threats from largest shareholder Hanwha to reassess operational funding
• Concerns over undervalued NOK2.20 offer from Anchor AS

JACKSONVILLE, Fla., June 25, 2025 /PRNewswire/ -- Water Street Capital, Inc. ("Water Street"), a long-term, value-oriented private investment firm which, together with its affiliates, collectively owns 8.26% of the outstanding common stock of REC Silicon ASA (OSL: RECSI.OL) ("REC Silicon" or the "Company") as the Company's second largest shareholder, today commented on the results of the Company's Annual General Meeting, which included the appointment of John Adams, Karina Fossmark, Jane Power, Jens Ulltveit-Moe, and Mike Kerschen to the Company's reconstituted Board of Directors. Additionally, REC Silicon has launched an investigation into the circumstances that led to the termination of Hanwha's 10-year purchase contract with the Company in December 2024 to acquire all polysilicon from its Moses Lake facility.

Water Street Capital issued the following statement:

"Water Street Capital would like to thank the thousands of investors who joined us in our efforts to ensure that the top priority of REC Silicon's Board of Directors remains maximizing the value of the company. 

The recent threats by the Company's largest shareholder, Hanwha Solutions Corporation ("Hanwha"), to reassess its funding of the Company's operations should it lose control of the Board are unfortunate. Going forward, we hope that Hanwha will work with us constructively for the benefit of all shareholders. 

Water Street Capital's objectives are 100% aligned with our fellow shareholders. We do not believe that shareholders were given proper information regarding the value of the company and its assets when asked to vote in favor of the drastically undervalued NOK2.20 offer from Anchor AS.

REC Silicon's new Board of Directors will be solely focused on maximizing value for all Company shareholders going forward.

'Life shrinks or expands in proportion to one's courage.' – Anais Nin"

Signed,
Gilchrist Berg
Founder and Principal, Water Street Capital

Media Contact
Jonathan Gasthalter/Brandon Lin
Gasthalter & Co.
Tel: (212) 257-4170
jg@gasthalter.com

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SOURCE Water Street Capital, Inc.

FAQ

What changes were announced at REC Silicon's (RNWEY) Annual General Meeting?

At the AGM, five new board members were appointed: John Adams, Karina Fossmark, Jane Power, Jens Ulltveit-Moe, and Mike Kerschen. The company also launched an investigation into Hanwha's contract termination.

Why is Water Street Capital concerned about REC Silicon's (RNWEY) current situation?

Water Street Capital is concerned about Hanwha's threats to reassess funding and believes shareholders weren't properly informed about the company's value regarding the NOK2.20 Anchor AS offer, which they consider significantly undervalued.

What percentage of REC Silicon (RNWEY) does Water Street Capital own?

Water Street Capital, together with its affiliates, owns 8.26% of REC Silicon's outstanding common stock, making it the company's second-largest shareholder.

What happened to Hanwha's purchase contract with REC Silicon (RNWEY)?

Hanwha's 10-year purchase contract to acquire all polysilicon from REC Silicon's Moses Lake facility was terminated in December 2024, and the company has launched an investigation into the circumstances of this termination.