0001213900-16-018665.txt : 20161116 0001213900-16-018665.hdr.sgml : 20161116 20161116172045 ACCESSION NUMBER: 0001213900-16-018665 CONFORMED SUBMISSION TYPE: DEFA14A PUBLIC DOCUMENT COUNT: 2 FILED AS OF DATE: 20161116 DATE AS OF CHANGE: 20161116 EFFECTIVENESS DATE: 20161116 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SURGE COMPONENTS INC CENTRAL INDEX KEY: 0000747540 STANDARD INDUSTRIAL CLASSIFICATION: WHOLESALE-ELECTRONIC PARTS & EQUIPMENT, NEC [5065] IRS NUMBER: 112602030 STATE OF INCORPORATION: NY FISCAL YEAR END: 1130 FILING VALUES: FORM TYPE: DEFA14A SEC ACT: 1934 Act SEC FILE NUMBER: 000-27688 FILM NUMBER: 162003205 BUSINESS ADDRESS: STREET 1: 95 EAST JEFRYN BLVD CITY: DEER PARK STATE: NY ZIP: 11729 BUSINESS PHONE: 5165951818 MAIL ADDRESS: STREET 1: SURGE COMPONENTS INC STREET 2: 95 EAST JEFRYN BLVD CITY: DEER PARK STATE: NY ZIP: 11729 DEFA14A 1 defa14a111616_surge.htm DEFINITIVE ADDITIONAL MATERIALS

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
SCHEDULE 14A INFORMATION
 
Proxy Statement Pursuant to Section 14(a) of
the Securities Exchange Act of 1934 (Amendment No.     )
 
Filed by the Registrant  x
 
Filed by a Party other than the Registrant  o
 
Check the appropriate box:
o Preliminary Proxy Statement
o Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))
o Definitive Proxy Statement
x Definitive Additional Materials
o Soliciting Material under §240.14a-12
 
Surge Components, Inc.
(Name of Registrant as Specified In Its Charter)
 
 
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
 
Payment of Filing Fee (Check the appropriate box):
   
x No fee required.
o Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.
  (1) Title of each class of securities to which transaction applies:
     
  (2) Aggregate number of securities to which transaction applies:
     
  (3) Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined):
     
  (4) Proposed maximum aggregate value of transaction:
     
  (5) Total fee paid:
     
   
o Fee paid previously with preliminary materials.
o Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing.
  (1) Amount Previously Paid:
     
  (2) Form, Schedule or Registration Statement No.:
     
  (3) Filing Party:
     
  (4) Date Filed:
     
       

 

 

 

Letter to Our Shareholders

The following letter was sent to certain of our shareholders on November 16, 2016:

Image result for surge components

November 16, 2016

Dear Shareholder,

I very much enjoyed speaking with you on [date], and I appreciate the opportunity to share some additional information around how we are continuing to grow the company. As you know, Steve and I founded Surge over 35 years ago and are proud to have successfully built the company into what it is today. We work hard 24/7 to execute on our strategic growth plan, which we strongly believe will translate into significant shareholder value over time. Following are some details on our approach:

We’re introducing new and innovative products that address critical market needs. Specifically, we have gained and continue to grow market share in global industries that are showing explosive growth. The automotive sector is one example and we are building an arsenal of products that enable us to tackle the high demand for electronic components as automobiles are increasingly becoming a “computer on wheels.”

We are expanding into new geographies. We continue to grow in Asia and proudly serve as the North American sales and marketing partner for a number of large, world-class manufacturers. We are also expanding our presence in the South American market, and have already begun doing so in Brazil. This is due to the relationships that Steve and I have forged with scores of manufacturers around the world for over three decades. I personally spend at least eight weeks every year all across Asia nurturing and growing these relationships, which constantly open new doors in the various regions where we market and sell their products. These manufacturers are already concerned about the effect a costly and time-consuming proxy fight would have on our business. I am confident that displacing Steve and me from the Board would threaten the strength of these relationships and, in turn, disparately impact our business.

We are recruiting and hiring the best talent in the business. Our team includes the best in the business engineers to ensure that we continue to develop cutting-edge products for our customers. We also recently hired two industry sales veterans to focus on managing and delivering growth in the key areas of distribution and electronic manufacturing services. These two market segments represent meaningful potential growth for us; because opening the door to companies in these segments translates into new opportunities with their customers as well.

 1 
 

A strategic acquisition could complement our organic growth strategy. As we focus on this potential strategy we may consider: (1) other electronic component companies and suppliers similar to Surge and (2) regional sub-contractors that manufacture for other customers, using the kind of components that we produce. We will be deliberate about our approach to acquisitions, making certain that we adhere to strong return profiles, which will mean additional value for our shareholders.

As we execute on these dynamic growth plans, we are building on our already strong foundation. Many of our customers are Fortune 500 companies and two of the largest distributors of electronic components, Avnet Inc. and Future Electronics, distribute the Surge brand. These distributors are committed to increasing our business significantly, as our sales channels. We are also a preferred supplier to two of the top subcontractors, Jabil, Inc. and Flextronics. Steve and I have worked tirelessly to develop and grow these critical distribution and supply partnerships over nearly four decades. We are confident that Surge’s relationship with these valued business partners will continue to thrive and expand under our stewardship.

Beyond growth, transparent and clear shareholder communication and best-practice corporate governance are incredibly important to me and to the entire Surge Board of Directors. To that end, we are exploring the possibility of de-staggering the Board. We are also hiring a professional investor relations firm to make sure we are always communicating appropriately with our shareholders.

Importantly, we remain committed to discharging our fiduciary duty to you and all shareholders to put Surge’s capital to work in a way that will mean strong returns for you over time. Our priorities remain to direct our capital in ways that will help us grow either organically, or through acquisition. In addition, we continue to execute on our share repurchase program.

Overall, we are confident that our strategy is the best way to build on the highly respected and financially healthy company Surge is today. Ultimately, we expect that the work we have done, alongside the rest of our management team and our valued employees, to strengthen our financial profile, to generate cash, and to put together a very strong growth strategy will be reflected in the stock price.

That is why I am asking you to vote for Steve and me and give us the opportunity to continue to build the business for the benefit of all shareholders. I sincerely believe that in my and Steve’s absence, the goals I have laid out in this letter would be very difficult, if not impossible, to accomplish.

Lastly, there can be no assurances regarding the future success or longevity of Surge if Steve and I are forced to leave the Board. I believe this because Steve and I are the two people with the principal relationship with Surge’s vendors, customers, suppliers and employees. These relationships would be in jeopardy of substantially losing their strength and value because our employees and business partners may not react positively to Steve and me no longer being on the Board. This would likely have a negative impact on the value of Surge’s long term and short term stock value.

[Shareholder name], again, I sincerely appreciate the chance to convey these points to you, and I am always available to discuss further. Please do not hesitate to call me at (516) 647-1467.

Sincerely,

Ira Levy

Chief Executive Officer, President and Director

Surge Components, Inc.

95 East Jefryn Blvd.

Deer Park, New York 11729

 

2

 

GRAPHIC 2 image_001.jpg GRAPHIC begin 644 image_001.jpg M_]C_X 02D9)1@ ! 0$ 8 !@ #_VP!# @&!@<&!0@'!P<)"0@*#!0-# L+ M#!D2$P\4'1H?'AT:'!P@)"XG("(L(QP<*#7J#A(6&AXB)BI*3E)66EYB9FJ*CI*6FIZBIJK*SM+6VM[BYNL+#Q,7& MQ\C)RM+3U-76U]C9VN'BX^3EYN?HZ>KQ\O/T]?;W^/GZ_\0 'P$ P$! 0$! M 0$! 0 $" P0%!@<("0H+_\0 M1$ @$"! 0#! <%! 0 0)W $" M Q$$!2$Q!A)!40=A<1,B,H$(%$*1H;'!"2,S4O 58G+1"A8D-.$E\1<8&1HF M)R@I*C4V-S@Y.D-$149'2$E*4U155E=865IC9&5F9VAI:G-T=79W>'EZ@H.$ MA8:'B(F*DI.4E9:7F)F:HJ.DI::GJ*FJLK.TM;:WN+FZPL/$Q<;'R,G*TM/4 MU=;7V-G:XN/DY>;GZ.GJ\O/T]?;W^/GZ_]H # ,! (1 Q$ /P#W^BBB@ HH MHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB M@ HHHH **** "BBB@ HHHH ***X3XG^*M4\*Z597&EO$LDLQ1_,3=QBMJ%&5 M>HJ<-V3.:A'F9W=%>)>#_B;XEUKQ78Z?>2VQMYBP<+" >!GK6Y\/?'.N>(_% ME_I^HR0-;PQNR!(]IR& '/TKLK957I*3E;W5HT5YWX4\8:OJ_C MW6M(NWA-I:9\H+'@CGN>];/@;7K_ %ZTU*2_:-FM[V2&/8NWY0>*PJX.I23< MK:6?W[&D:L9;'5T5B>%M3N=5TJ2XNRID6XDC&U<# .!4-KJ]W+XZOM)=Q;!YK)T)*4H_RCYU9/N=#16)I>I7-UXBUFRE*F&T,7E #!&X$G/Y5 M#X:U>[U2RU*6Z*%K>ZDBCVKCY5Z9H="23?:WX[ II_UV.AHKSJS\8:O/\+M0 MU]WA^WP22*A$?RX5L#BLGQ+\0-?TSP7X;U2VDMQ=7Z,TY:($$C'0=JZ89=6G M/D5KWY?FE(@E?RN>MT5X[J/Q%\0VWP[T?6HY+?[;=7$D((?AIIVNI);_;I[LQ.3$-NT9[5?\ 95?3;5\OSU_R%]9A^%SUZBN$\&>* M=4UOP)>:M>O$UW$9 A1,+P,CBO,!\8?%Q'^NM/\ OP*=+*J]6+LQ3Q4 M()-]3Z*HKQGP+\2/$>O^+;73KZ6V:VD#%@D(4\#UK-U[XJ^*=/\ $.HV4$UJ M(8)VC0& $X!XYJED^(=5TM+I7W_X OK=/EYCWBBOGZP^+?BNXU*U@DFM-DDR M(V(!T+ &N_\ BCXNU;PI!IKZ6\2FX=Q)YD>[H!C^=14RJO"K&D[7E>WR''%0 ME%S6R/0J*^=O^%P^+O\ GM:?]^!1_P +A\7?\]K3_OP*Z/[!Q7=??_P"/KU+ MS/HFBO$=!^-=]'-OB=8^%IFL+2(7NI 9:/=A(_P#>/K[5Y=>? M%GQ;=R%DNX;9>RQ1#C\371ALHQ->/.E9/N9U,53INS/HZBOFRT^*?BZUD#'4 M5G ZK+$"#7IW@GXIVOB.Z33=1A6SU!_]60+I MS=CT6BN'^)WB?4_"VBVEUI;1+++<>6QD3<,8)KR[_A4445YATA7E7QR_Y .F_]?!_E7JM>5?' M+_D Z;_U\'^5>AE7^^4_7]##$_PF>;_#G_D?]+_WF_\ 0375?"#_ )'[5?\ MKE)_Z,%;_P!!-=5\(/\ D?M5_P"N4G_HP5])F/P5O\*_-GG8 M?>'JS1\ _P#)6?$W_ OYUTOPM_Y!^M?]A*7^=#/^N;?TKW,/_'_ .XC_P#26<=3^'_VZOS-;3/"%[XQ^%.BVUC/#$\% MS*[&7.""2.U1>-M N?#'PLTO2[N6.26.^)+1YQR#6YX-\5Z?X2^&&F76HB4Q MS3R(OEKDYW&MO4O'_AZ7PG;:Y<64MS92W!A1'B!(89YP:YI5L5&O91O!3=O- MZ]350INGO9V,3X:G/PJU+_>F_P#017AR_=KZ4TK7M,\0^"-2N]*M&M;=5D0H M4"\A>N!]:^:U^[7H97*4JM:4E9W6ASXI)0@D[G:?"S_D?['Z-_*L3Q9_R.&L M?]?;_P ZV_A9_P C_8_1OY5B>+/^1PUC_K[?^==4?]]E_A7YLQ?\!>I3TG_D M-6'_ %\Q_P#H0KUKXZ?\>FB_]=)/Y"O)=)_Y#5A_U\Q_^A"O6OCI_P >FB_] M=)/Y"N?%?[_0_P"WOR-*7\"?R/&:W?\ A%;X^$!XD1XFLQ*8F0'YE]_I6%7? MKKNG0_!EM(-RIOYKHD0CE@..3[5VXB=2')R+=I/TZF%*,97YNQP%>Z_"+5)C MX#OT8[OL+N8\^F"Z_"_3I+/X;7]S*I4W8E=01U4*0#7%G/+]6M+NC M?!7]IIV/$+RXEO+ZXNIF+2RRL[,>Y)K0\,:7#K7B:PTZX9EAGE"N5/./:LIO MOM_O'^=='X _Y'O2?^NU>A7;A1DXZ63_ ".>&M17[E/Q5I4&A^*=0TRV9VAM MY-J%SDXQWK+MYI+>ZAFB8K)&ZLK#J"#7J7C#X9^)=9\7:CJ-G! UO/)NC+3 M$C [5B#X0^+@RG[-;<$'_7K7)1Q^'=*//45[*^OD:SH5.=VBSL_C)(TW@O2) M&^\\ZL?J4->(U[=\9(VA\%Z3$_WDG53]0AKQ&L\F_P!U5N[_ #*QG\4ZCPKX M%U/Q?!<36$UO&L#A&$I.22,U[-\-O"%_X0T^]M[^6&1II0ZF(G@8K@?A1XLT M7PW8ZC'JMYY#S2JR#83D >U>OZ%XDTKQ)#+-I5SYZ1-M<[2,'\:\K.*^*;G2 M:_=Z:V_4Z\)"E923]XUJ***^>.\*\J^.7_(!TW_KX/\ *O5:\J^.7_(!TW_K MX/\ *O0RK_?*?K^AAB?X3/-_AS_R/^E_[S?^@FNJ^$'_ "/VJ_\ 7*3_ -&" MN5^'/_(_Z7_O-_Z":ZKX0?\ (_:K_P!Q_P"2J:I_V#H__0JX9?Q:WH_S1HOA@6=#_P"1P\2?6#_T%JJ^ M"?\ D&ZS_P!?\U6M#_Y'#Q)]8/\ T%JJ^"?^0;K/_7_-1/X)^D/R".Z^9QFF M_P#)"]7_ .NTW_H=8WBVTNKOX:^#1;6TT^V)MWE(6QTZXK9TW_DA>K_]=IO_ M $.KJ>-CX,^'?A>06(NOM,)7!;&W'_ZZ]>,IQJ-TU=^T>G_;IRVBXVD[+E7Y MG):Q:72?![0HFM9Q*MY(2AC.XI3TG_D-6'_ %\Q_P#H0KUK MXZ?\>FB_]=)/Y"O)=)_Y#5A_U\Q_^A"O6OCI_P >FB_]=)/Y"N?%?[_0_P"W MOR-*7\"?R/&:N'2;]=*&J&UD^PE_+\_'R[O3-4Z]1@_Y(#![5\TU[-\(_^1)U_P#X%_Z :X,YHQE151[IK\3HP4VI\O<\:;[[ M?[Q_G6WX/D:#Q1:SQG$D0=T/N%.*Q&^^W^\?YUT/@2-)O&VF12 ,CR;64]P1 MR*]+$:497[/\CFI_&C6/Q;\7[F_TVWX8C_CW7UH'Q;\7EE'VVWY('_'NM8WC M>RMM-\::I9V<*PV\4N$C7H.*P5^^O^\/YUST\)A9P4U36JOLC25:K&37,SVW MXQR--X+TB5SEGG5F/N4->(U[9\7O^1&T7_KLG_H!KQ.L,F_W5>K_ #+QG\4E MBM;BX!,%M+*!U,:%L?E7MOP1MY[?1M3$\$D1,X($B%<\>]5_@: =,U;(!_?K MU'^S7K04+T 'T%>9G&8-\^%Y>VOXG5@\.DE4N+1117SAZ 5Y5\XCF-S=O.I0$;0QZ5YV,Q%*I&?*[W4/PW.FE M"2:NNY'X%_Y ,O\ U]S?^A57L?\ DJFJ?]@Z/_T*MGP[I$FBZ<]M+*LK-,\F MY1@88YQ45OHDL/C"\UHS(8I[5(!&!R"#G-C11?+%=BIH?\ MR.'B3ZP?^@M57P3_ ,@W6?\ K_FK:T_29+/7-5OVE5DO3'M0#E=H(.?SJ'0- M#ETBUOX9)DD-S<23*5'W0W:B=6#C))[J/X+4%%W7S/.--_Y(7J__ %VF_P#0 MZP/&O_)-/!G_ %S;^E>DVG@6[M_AY>^&VO83/M1QE"-;F_"^_ MNO FG>'UU&W6:TG>5I2IVL#G@?G2W/PPOY_ %IX=&HVXG@NC.92IVD'/'ZU4 M<5@U)3NN;G;O;6VI+I5; O"MQX1T*33[FYCN':8R!HP0,$#CGZ5!XM^'&C^*Y?M4A> MUOL8^T1#[W^\.]3A\TI4<74;UA)[CJ8:4Z45U1\[Z7J=WHVI0ZA8R>7<0G*, M1D?E4-W=37UY-=W#;YIG+NWJ3UKU"3X&:CYA\K6;8IV+QL#^E/M_@9?&4?:= M:@6/OY49)_6O5_M/ WY^=7]'_DK/G"O5;/_D@% MY_UW;^8I/^%&ZK_T&+/_ +X;_"NP@^'U[%\-9_"YOX#<22%Q-M.T9([=>U=F M-S##5%#EG>TD^NQC0P]2+=UT/GNO;/@S";CPIK, .#))L_-2*Q_^%&ZK_P!! MBS_[X;_"O0?A]X.N?!VFW5MI^H[UP$OP,U 2'R-:MV3L9(R#^E;T6#G;QZUG+]]?\ >'\Z]GMO@C#%IEP+ MC4O.OW3$)V[8XV]3W-98^!NK @_VS9\$'_5M_A6M/-,$ERJ5DM.I$L+6;NT; M'Q>_Y$;1?^NR?^@&O$Z^DO&W@NZ\4^'K#38+N*"2V=69W4D-A<=JX'_A1NJ_ M]!BS_P"^&_PKCRS'X:CA^2I.SNS;$X>I.I>*.(T#Q?K7AF*:+2[A8DF8,X9 MV2*]+^&?CC7O$7B:2SU*Z26!;=G"B,+R"*R_^%&ZK_T&+/\ [X;_ KJ/ ?P MUOO"6O/J%QJ%O.C0F/9&I!R2.>:6.Q. JTIN+3FUVU_(*%.O&23V/2:***^5 M/4"BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH M **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ MHHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "B %BB@#_]D! end