The LGL Group, Inc. (NYSEAM:LGL) announced on August 12, 2021 that its board of directors has authorized the company's management team to explore a potential spin-off of its MtronPTI, Inc. business into a newly created and separately traded public company. The LGL Group continues to strive for profitable growth internally and by acquisition. LGL believes that, if completed, the potential spin-off would enable shareholders to more clearly evaluate the performance and future potential of each entity on a standalone basis, while allowing each to pursue its own distinct business strategy and capital allocation policy.

Separating MTronPTI as an independent, publicly owned company positions the business to increase value to both MTronPTI and LGL Group. The spin-off permits each company to tailor its strategic plans and growth opportunities, more efficiently raise and allocate resources, including capital raised through debt or equity offerings, flexibly use its own stock as currency for teammate incentive compensation and potential acquisitions and provide investors a more targeted investment opportunity. Completion of any spin-off would be subject to various conditions, including final approval of LGL's board of directors.

There can be no assurance that the potential spin-off transaction will be completed in the manner described above, or at all. If LGL proceeds with the spin-off, it does not expect to complete the transaction earlier than the end of the last quarter of 2021.