Shimmick Takes Pivotal Steps to Further Advance Evolution as Leader in Water Infrastructure

Strengthens financial position, setting up the Company for future growth and success

Board expands to include new Independent Director and new Committee focused on the long-term value creation

IRVINE, Calif., May 20, 2024 (GLOBE NEWSWIRE) -- Shimmick Corporation (“Shimmick” or the “Company”) (Nasdaq: SHIM), a leading water infrastructure company, today announced that it has taken several key actions to enhance liquidity and deliver on its transformation into a water infrastructure company.

• As previously announced, Shimmick has signed an asset purchase agreement for the sale of its foundation drilling assets for a total consideration of $17.5 million. Closing of the agreement is expected by the end of this week.
• Shimmick has entered into an amendment to its existing credit facility with MidCap, which, among other things, cures the previously disclosed default. As a result, Shimmick expects to file its Quarterly Report on Form 10-Q for the quarter ended March 29, 2024, today, May 20, 2024, with no changes to its previously announced financial results.
• Shimmick has entered into agreements with AECOM (“AECOM”), to resolve the ongoing lawsuit relating to the purchase and sale agreement for the divestiture of Shimmick from AECOM in exchange for shares in Shimmick.
• Peter Kravitz will join the board as a new independent member and as a member of a newly formed Board of Directors special committee to oversee efforts to enhance the long-term value of the Company.
• Finally, Shimmick has entered into a new, $60 million revolving credit facility.

“Today’s announcements accelerate the transformation of Shimmick as a leader in the U.S. water infrastructure space,” said Steve Richards, Chief Executive Officer of Shimmick. “The settlement, the asset sale and the incremental debt financing enhance liquidity as we complete legacy projects, with the substantial cash recoveries expected this year as we also vigorously pursue claims and change orders that are expected to deliver substantial cash inflows. And lastly, we are excited to welcome Peter Kravitz to our Board.”

See Shimmick’s Current Report on Form 8-K filed with the Securities and Exchange Commission on May 20, 2024 for the details of the aforementioned transactions, including the terms of the amended MidCap credit facility, the settlement and release with AECOM and related share issuance, the addition of Peter Kravitz to the Shimmick board of directors and appointment to the special committee and the new revolving credit facility. Additional information regarding the sale of the foundation drilling assets will be provided following the closing of the transaction.