From the 10Q
The trading price of our stock may be adversely affected if the announced exploration of financial strategies and strategic alternatives does not result in a transaction or results in a transaction different from what the market may be expecting. In addition, this process may have an adverse impact on our business operations and, therefore, on our operating results or financial outlook.
On August 6, 2015, we announced that our Board of Directors has authorized its strategic committee of independent directors to identify, evaluate and pursue the feasibility and relative merits of various financial strategies. The Strategic Committee plans to consider a wide range of available options, including, among other things, partnerships, strategic business model alternatives, recapitalization, disposition of one or more corporate assets, or a possible business combination or sale of Echelon, in addition to continued pursuit of Echelon as a stand-alone entity. Echelon has engaged Goldman Sachs & Co. as its financial advisor in support of these activities.
There are various risks and uncertainties that this process may cause, such as:
• distracting management from the day-to-day operations of the business, which may adversely affect our operations;
• consuming time and resources from our normal business operations, which may result in missing or not executing on near or long-term business opportunities; and
• creating perceived uncertainties as to our future direction, which may result in increased difficulties and expense in recruiting and retaining employees, particularly senior management, and may impact our relationships with customers and vendors.
In addition, if our exploration of strategic alternatives does not result in a transaction or, alternatively, results in a transaction different than what the market expects, it is likely that the trading price of our stock will be adversely affected. Any of these risks or uncertainties could adversely affect the Company’s business, financial condition, results of operations or cash flows. There can be no assurance that the Board of Directors’ exploration of strategic alternatives will result in the entering or consummation of any transaction or any change in the Company’s overall structure or its business model, or that any transaction or change will enhance shareholder value. Any transaction that is ultimately completed may not deliver the anticipated benefits or enhance shareholder value.
"The Investors's Chief Problem--and even his worst enemy--is likely to be himself"
---Benjamin Graham
