FreightCar America Reports Inducement Grant Under Nasdaq Listing Rule 5635(c)(4)
CHICAGO, June 28, 2023 (GLOBE NEWSWIRE) -- FreightCar America, Inc. (Nasdaq: RAIL) (the “Company”) announced today that the Company made an equity inducement grant (“Inducement Grant”) to Nicholas J. Randall on June 26, 2023, in connection with Mr. Randall’s appointment as Chief Operating Officer of the Company. The Inducement Grant is made pursuant to the employment agreement entered into between the Company and Mr. Randall on May 12, 2023, and in accordance with Nasdaq Listing Rule 5635(c)(4).
The Inducement Grant consists of 300,000 stock options that are exercisable over a ten-year period, with an exercise price no less than fair market value of Company common stock, par value $0.01 per share on the effective date, which will vest on the later of (i) the first date the closing price of one share of common stock is equal to or greater than 125% of the exercise price, and (ii) 1/3 of the options per year on the three consecutive anniversaries of June 26, 2023.
About FreightCar America
FreightCar America is a diversified manufacturer of railroad freight cars and aftermarket parts. The Company designs and builds a broad portfolio of high-quality railcars including open top hoppers, covered hoppers, articulated intermodal flat and well cars, specialty and non-intermodal flat cars, mill, aggregate, and woodchip gondolas, coil steel cars, box cars and coal cars. The Company also specializes in the conversion of railcars for repurposed use, along with complete railcar rebody and repair services. FreightCar America is headquartered in Chicago, Illinois, with facilities in the following locations: Castaños, Mexico; Johnstown, Pennsylvania; and Shanghai, People’s Republic of China. For more information on the Company, visit www.freightcaramerica.com.
Forward-Looking Statements
This press release may contain statements relating to our expected financial performance and/or future business prospects, events and plans that are “forward-looking statements” as defined under the Private Securities Litigation Reform Act of 1995. Forward-looking statements represent our estimates and assumptions only as of the date of this press release. Our actual results may differ materially from the results described in or anticipated by our forward-looking statements due to certain risks and uncertainties. These potential risks and uncertainties include, among other things: the cyclical nature of our business; adverse economic and market conditions; fluctuating costs of raw materials, including steel and aluminum, and delays in the delivery of raw materials; our ability to maintain relationships with our suppliers of railcar components; our reliance upon a small number of customers that represent a large percentage of our sales; the variable purchase patterns of our customers and the timing of completion, delivery and customer acceptance of orders; the highly competitive nature of our industry; the risk of lack of acceptance of our new railcar offerings by our customers; risks relating to the potential financial and operational impacts of the COVID-19 pandemic; and other competitive factors. We expressly disclaim any duty to provide updates to any forward-looking statements made in this press release, whether as a result of new information, future events or otherwise.
INVESTOR/MEDIA CONTACT | Lisa Fortuna or Stephen Poe |
RAIL@alpha-ir.com | |
TELEPHONE | 312-445-2870 |
