GSE Systems’s board issues statement in favor of merger with Pelican

GSE Systems (GVP) issued a statement thanking stockholders who have already voted in favor of its merger with an affiliate of Pelican Energy in an all-cash transaction and reminding them that, following the amendment to increase merger consideration unanimously approved by the board, Pelican will acquire all the outstanding shares of GSE for an estimated total cash consideration of $4.60 per share. The board’s statement provided reasons for voting in favor of the merger, including: the per share price represents a premium of approximately 69% over the closing price of GSE common stock as of August 7; the per share price represents a premium of approximately 29% over the average 30-day volume weighted average price per share; and Pelican is an independent third party buyer and the merger is an arms-length transaction. Management has expressed that substantial doubt exists for the company to continue as a going concern; GSE cannot obtain performance bonds given its financial position and, therefore, is at a competitive disadvantage to its competitors.