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Drastic聽Change聽is聽Needed聽At聽Servotronics聽Today聽to聽Safeguard the聽Interests聽of聽Shareholders, Employees and Customers

Beaver Hollow Wellness Urges Shareholders to Vote the WHITE Proxy Card "FOR" Its Four Highly Qualified Director Nominees and "WITHHOLD" on all Company Nominees except for Karen L. Howard

ELMA, N.Y., May 13, 2025 /PRNewswire/ -- Beaver Hollow Wellness, LLC ("BHW"), the largest shareholder of Servotronics, Inc. (NYSE American 鈥� SVT, "Servotronics" or the "Company"), owning 15.2% of the outstanding shares, today issued a dire warning about the Company's future under its current Board of Directors. Continuing a pattern of bad faith, obstruction, and brazen disregard for fiduciary responsibility, the Board's secrecy and defiance, if left unchecked, may ultimately lead to the collapse of Servotronics' operations in Western New York 鈥� putting hundreds of local jobs at risk, destroying shareholder value and threatening the economic viability of one of the region's last remaining advanced manufacturers.

The Financial Truth Behind Servotronics' Spin
While聽Servotronics issued a press release for Q1 2025, touting a modest quarterly profit and operational turnaround,聽a聽closer review聽of聽the聽Company's聽financial filings聽paints聽a聽far聽different picture鈥攐ne聽of聽financial distress, deteriorating liquidity, and structural instability.

Key聽facts聽from聽the聽Company's聽own聽10-Q聽filing include:

• Cash from operations fell to negative $1.6 million 鈥� a $2 million deterioration from Q1 2024;
• Line of credit borrowing spiked 75% in a single quarter to $3.7 million;
• Unrestricted cash dropped to just $37,000;
• Interest expense rose nearly 17%, further straining profitability; and
• SG&A costs rose due to legal, proxy, and investment bank fees, not operational growth.

This performance does not reflect a healthy or stable business. It reflects a management team attempting to obscure聽reality聽from shareholders while preparing a sale or dismantling of the Company聽without transparency or聽stakeholder聽input. The聽reported聽profit, driven聽by聽accounting聽maneuvering聽and聽one-time addbacks, does聽not signal sustainable financial health.

Since 2022, BHW has continually pressed for improved transparency, accountability, and oversight from the Company's directors.

Instead, the Board has refused every reasonable offer to work collaboratively with its largest shareholder and inexplicably ignored BHW's requests to examine corporate records 鈥� including those concerning a potential sale of the Company, while utilizing delay tactics in responding to lawful requests under Delaware General Corporation Law (搂 220).

"For聽100聽days,聽the聽Board聽has聽acted聽in聽secret聽and聽in聽defiance of聽its聽obligations聽to聽shareholders,聽employees聽and customers," said Paul L. Snyder III, Managing Member of BHW. "Their refusal to disclose critical information and unwillingness to meet with the Company's largest shareholder sends a chilling signal: this Board is either covering up incompetence or actively preparing to dismantle the Company behind closed doors. Either outcome would be catastrophic for Western New York."

罢丑别听肠辞苍蝉别辩耻别苍肠别蝉听辞蹿听迟丑颈蝉听产别迟谤补测补濒听补谤别听谤别补濒:

• SVT's Elma-based jobs and local manufacturing presence are on the brink.
  
  
• No explanation has been provided for the lack of operational turnaround or strategic direction, as was promised over a year ago.
  
  
• Employees remain in the dark about the future of their Company and their Careers.

"This is not just corporate negligence 鈥� it's a slow-motion liquidation of Servotronics' legacy, carried out by a Board that seems more committed to hiding the truth than saving the Company," Snyder continued.

BHW calls on all shareholders 鈥� particularly SVT employees and retirees 鈥� to demand change now, before it's too late.

Vote FOR the election of Paul L. Snyder III, Christine R.聽Marlow, Michael W. Dolpp and Charles C. Alfiero聽on聽the聽WHITE聽proxy聽card聽to聽restore independent聽oversight, protect聽jobs, and聽give聽this聽Company a future.

For more information, visit聽

Media Contacts

Michael P. Hughes Masiello Martucci Hughes (716) 983-3731
[email protected]

碍别惫颈苍听碍别别苍补苍
Keenan Communications聽Group
(716) 481-6806
[email protected]

滨苍惫别蝉迟辞谤听颁辞苍迟补肠迟
Brian Valerio Alliance Advisors
[email protected]

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SOURCE Beaver Hollow Wellness