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Wynnefield Letter To Omega Protein

Wynnefield Letter To Omega Protein

Submitted by • December 24, 2015

In the twenty-three years of managing our small cap value fund, Wynnefield Capital Management, LLC and its affiliates (“Wynnefield”) have never observed a more glaring case of "Diworsification" than the risky and unsuccessful effort of Omega Protein Corporation (“Omega Protein”) to enter the human nutrition field.

While the actions of the Board of Directors of Omega Protein may be afforded protection under the "Business Judgement" safe harbor ‎ , the ugly truth is that the Omega Protein Board and its management have flushed away $150 million of shareholder value trying to enter a business that the Board and management lacked the skill sets to integrate, manage or execute on a successful strategic plan. Wynnefield could lay out line by line the details of this tragic and risky misallocation of shareholder equity but we would only be piling on. Omega Protein’s public disclosures filed with the Securities and Exchange Commission tell all.

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