Astrotech Corporation (ASTC) : 13,13 +13,78%
June 26, 2023
Board of Directors
Astrotech Corporation
c/o Thomas B. Pickens III, Chief Executive Officer
2105 Donley Drive, Suite 100
Austin, Texas 78758
Dear Directors,
As you are aware, BML Investment Partners, L.P. owns 13% of the shares of Astrotech and is
your largest shareholder. I was disappointed to see the company file an at-the-market (ATM)
offering on June 16, 2023. I believe that your shares are significantly undervalued, as they trade
at a large discount to net cash, and that any shares issued at this level would rapidly destroy
shareholder value. Considering these facts, I believe that shareholders would be better off if the
company was either sold or liquidated.
On behalf of BML Capital Management, LLC and BML Investment Partners, L.P., I am pleased
to submit this non-binding proposal to acquire 100% of the equity of Astrotech Corporation for
$17.25 per share in cash, which represents a 50% premium to the closing price on Friday, June
23.
This proposal is subject to limited confirmatory due diligence and is based on Astrotech having
at least $35 million of cash and cash equivalents at closing, net of any tail and closing costs, and
not having issued any shares under the ATM offering. This proposal is not subject to any
financing contingency, as we have funds readily available to close this transaction.
I believe that this proposal represents a compelling offer for Astrotech stockholders. I hope that
you share this view and look forward to discussing it with you further. I would appreciate a
response by 5pm ET on June 30, 2023, at which point this offer will expire.
Sincerely,
Braden Leonard
Total Cash (mrq) 44.15M
Total Cash Per Share (mrq) 26.21
Total Debt (mrq) 576k
Book Value Per Share (mrq) 27.75
Jun 01, 2023 11.36 11.78 10.89 11.40 11.40 35,600
May 01, 2023 10.34 11.95 10.04 11.50 11.50 115,000
Apr 01, 2023 10.65 11.00 10.14 10.40 10.40 45,400
Mar 01, 2023 12.87 13.01 10.10 10.66 10.66 96,900
Feb 01, 2023 12.10 14.07 11.53 12.95 12.95 443,400
Jan 01, 2023 9.99 12.34 9.99 12.09 12.09 125,800
Dec 01, 2022 9.90 11.82 9.28 9.99 9.99 547,217
Nov 01, 2022 12.00 13.50 9.30 10.20 10.20 301,281
Oct 01, 2022 13.20 13.80 10.20 12.30 12.30 183,265
Sep 01, 2022 13.80 14.40 12.30 13.20 13.20 204,439
Aug 01, 2022 13.80 16.20 12.30 13.80 13.80 263,144
Jul 01, 2022 12.60 14.70 12.60 13.80 13.80 63,550
Jun 01, 2022 16.50 17.10 12.60 12.90 12.90 107,050
May 01, 2022 15.90 16.80 14.40 16.50 16.50 98,090
Apr 01, 2022 21.60 22.20 15.90 16.20 16.20 121,183
Mar 01, 2022 21.60 23.10 19.80 21.60 21.60 192,625
Feb 01, 2022 19.20 22.20 18.00 21.30 21.30 249,151
Jan 01, 2022 20.40 23.10 18.00 19.50 19.50 234,297
Dec 01, 2021 24.30 24.60 19.50 20.40 20.40 371,402
Nov 01, 2021 31.20 33.00 22.80 24.00 24.00 522,731
Oct 01, 2021 31.50 34.50 29.10 30.90 30.90 726,944
Sep 01, 2021 33.30 33.90 28.80 31.50 31.50 391,866
Aug 01, 2021 34.50 36.30 28.20 33.30 33.30 1,657,386
Jul 01, 2021 41.40 42.00 30.00 32.40 32.40 963,596
Jun 01, 2021 35.40 39.90 33.60 39.90 39.90 1,113,366
May 01, 2021 36.90 37.20 30.90 35.10 35.10 998,583
Apr 01, 2021 66.60 89.40 32.10 36.90 36.90 6,113,055
Mar 01, 2021 70.50 76.20 42.90 65.70 65.70 1,323,382
Feb 01, 2021 59.40 124.20 59.40 65.70 65.70 2,390,276
