RCM Technologies, Inc. Enters Into Stock Purchase Agreement; Retires Over 14% of Shares Outstanding

The Company, Along with Members of its Executive Management Team and Board, Purchase 2,958,139 Shares from Shareholder Group
 Company Retires 1,858,139 Shares Outstanding

PENNSAUKEN, N.J., June 03, 2020 (GLOBE NEWSWIRE) -- RCM Technologies, Inc. (“RCM” or “the Company”) (NasdaqGM: RCMT), a premier provider of business and technology solutions designed to enhance and maximize the operational performance of its customers through the adaptation and deployment of advanced engineering, specialty health care and information technology services, is pleased to announce that its Board of Directors (the “Board”) has approved a stock purchase agreement (“Stock Purchase Agreement”) pursuant to which the Company, and three members of its management team and Board, purchased 2,958,139 shares of the Company’s common stock in a private transaction from a large shareholder of the Company.  The 1,858,139 shares acquired by the Company, which represented 14.1% of the Company's shares previously outstanding, are no longer outstanding. The remaining 1,100,000 shares were purchased by Bradley S. Vizi, the Company's Executive Chairman and President, who purchased 850,000 shares, Kevin D. Miller, the Company's Chief Financial Officer, who purchased 150,000 shares and Roger H. Ballou, a member of the Company's Board, who purchased 100,000 shares.

The transaction was reviewed and approved by the Board and its Audit Committee, with both Mr. Vizi and Mr. Ballou recused from such processes.

All shares were acquired for a purchase price per share of $1.20. Additional details on the transaction are as follows:

• The consideration paid by the Company consisted of an unsecured, subordinated promissory note (the "Note") for $2,229,767. The Note accrues interest at an annual rate of 9.00%, payable quarterly in arrears commencing on September 1, 2020, and continuing on each December 1, March 1, June 1 and September 1 thereafter, and has a maturity date of August 10, 2023
• The consideration paid by the other Purchasers consisted of an aggregate amount of $1,320,000, paid in cash

Mr. Vizi commented, “I am proud of the employees of RCM Technologies working tirelessly to maintain and build upon the significant progress we have made in the journey we undertook eighteen months ago. Their hard work, and significant flexibility provided by world-class financial partners as the Company navigates these unprecedented times, have been of great value to our Company. Not only is the deal significantly accretive to all shareholders, but sends an unequivocal message of our belief in RCM's future.”