CompoSecure Unveils Bold Spin-Off Plan to Boost Asset Management Growth!

• Get ready for some thrilling news!
• CompoSecure is set to join forces with Resolute Holdings via a Management Agreement!
• Existing shareholders will benefit from a pro-rata distribution of shares in this exciting new venture!
• This strategic spin-off aims to turbocharge CompoSecure’s growth through smart acquisitions!
• Industry veterans David Cote and Tom Knott will helm Resolute Holdings as Executive Chairman and CEO, respectively!
• Brace yourselves for a transformative journey, though keep in mind that some tax implications will apply!

In a bold move, CompoSecure, Inc. (Nasdaq: CMPO), a trailblazer in the realm of metal payment cards and security solutions, has announced plans to spin off a dynamic new subsidiary: Resolute Holdings Management, Inc. This exciting transition is set to position CompoSecure for accelerated growth and innovation!

As part of this groundbreaking transaction, a fully owned subsidiary of CompoSecure will enter into a Management Agreement with Resolute Holdings, ensuring a seamless transition of its investment team. The management team will play a pivotal role in steering CompoSecure towards unprecedented success, focusing on capital allocation, operational excellence, and strategic acquisitions.

Led by the indomitable Jon Wilk, CompoSecure’s existing management will continue delivering exceptional service to clients globally, leveraging the CompoSecure Operating System to drive robust revenue growth.

The distribution of shares in Resolute Holdings will take place on a pro-rata basis among all current shareholders, meaning you’ll receive a slice of this promising new entity proportional to your current holdings in CompoSecure. However, be aware that this could trigger a taxable event for shareholders in the eyes of the IRS.

While Resolute Holdings anticipates a modest profitability outlook for fiscal year 2025, its formation represents a strategic long-term vision that will undoubtedly lay the groundwork for accelerated growth and enhanced shareholder value.

Leading the charge at Resolute Holdings will be the esteemed David Cote, serving as Executive Chairman, alongside Tom Knott as CEO. The Board of Directors will feature a diverse and accomplished group of leaders, all dedicated to steering this venture toward success. Once operational, Resolute Holdings is expected to trade under the symbol “RHLD” on Nasdaq!

Goldman Sachs & Co. LLC is stepping in as the financial advisor for CompoSecure, while the legal heavyweights at Paul, Weiss, Rifkind, Wharton & Garrison LLP will provide invaluable support.

This spin-off is contingent upon customary approvals, including the green light from the SEC and final nods from CompoSecure’s Board of Directors, with completion anticipated in the first quarter of 2025.

About CompoSecure

Since its inception in 2000, CompoSecure (Nasdaq: CMPO) has served as a pivotal technology partner for market leaders and consumers alike, delivering trust and security in an increasingly digital world. Its cutting-edge payment card technology and innovative security solutions empower individuals with seamless access to their financial assets.

About Resolute Holdings Management, Inc.

Resolute Holdings Management, Inc. is poised to become a trailblazer in alternative asset management, offering strategic oversight and management services to enhance CompoSecure’s operational capabilities and long-term value creation. This entity stands apart from Resolute Holdings I, L.P., which previously acquired CompoSecure shares.

Forward-Looking Statements

This announcement contains forward-looking statements based on management’s beliefs and assumptions. While CompoSecure is optimistic about its strategies and plans, inherent risks and uncertainties could lead to actual results differing significantly from expectations. Factors such as market conditions, execution of the spin-off, and broader economic influences could impact outcomes.

Contacts

For Resolute Holdings

Email: [email protected]

For CompoSecure

Corporate Contact: Anthony Piniella

Head of Communications, CompoSecure

Phone: (917) 208-7724

Email: [email protected]

Investor Relations Contact: Sean Mansouri, CFA

Elevate IR

Phone: (720) 330-2829

Email: [email protected]