ALJ Regional Holdings, Inc. Announces Anticipated Closing Date Of Merger And Extension Of Tender Offer

ALJ Regional Holdings, Inc. (Pink Sheets: ALJJ) (“ ALJ”) today announced that based on conversations with Optima Specialty Steel, Inc. (“ Optima”) regarding its efforts to secure sufficient financing to complete the acquisition (the “ Merger”) of ALJ’s majority-owned subsidiary, KES Acquisition Company (“ KES”), ALJ believes that the closing of the Merger is likely to occur on Monday, January 28, 2013.

In light of this, ALJ has extended the expiration date of its offer to purchase up to 30,000,000 shares of its outstanding common stock under its previously announced modified “Dutch auction” tender offer. The tender offer, which as previously extended was due to expire at 12:00 midnight, New York City time, on Thursday, January 17, 2013, is now set to expire at 12:00 midnight, New York City time, on January 31, 2013, unless further extended. To date, 38,008,621 shares of ALJ’s common stock have been tendered and deposited in the tender offer. The tender offer is conditioned upon completion of the Merger, which in turn is conditioned on Optima securing sufficient financing.

Tender of shares must be made prior to the expiration of the tender offer and any shares previously tendered may be withdrawn at any time prior to the expiration of the tender offer. All other terms and conditions of the tender offer as described in the Offer to Purchase and related materials distributed to stockholders continue to apply to the tender offer as extended.

This press release is for informational purposes only and is not an offer to buy or the solicitation of an offer to sell any shares of ALJ’s stock. ALJ’s tender offer is only being made pursuant to the Offer to Purchase and related materials (as amended and supplemented). Stockholders should read these materials carefully. The materials contain important information, including various terms and conditions to the tender offer. Stockholders can obtain a copy of the Offer to Purchase and related materials (as amended and supplemented) for free at ALJ’s website,, or from AST Phoenix Advisors, the information agent for the tender offer, by calling – for banks and brokers (212) 493-3910, for all others, toll free (877) 478-5038. Stockholders are urged to carefully read these materials prior to making any decision with respect to the tender offer.

About ALJ Regional Holdings, Inc.

ALJ is the parent company of KES, the owner and operator of a steel mini-mill near Ashland, Kentucky producing both merchant bar quality flats (MBQ Bar Flats), and special bar quality steel flats (SBQ Bar Flats).

Forward-Looking Statements

This announcement contains, or may contain, “forward-looking statements.” Generally, the words “believe,” “anticipate,” “expect,” “may,” “should,” “could,” and other future-oriented terms identify forward-looking statements. Forward-looking statements include, but are not limited to, statements relating to the following: (i) the consummation and timing of the proposed Merger; (ii) Optima’s ability to secure, and the timing of Optima securing, sufficient financing to complete the Merger; (iii) the consummation and timing of the proposed tender offer; and (iv) assumptions underlying any of the foregoing statements.

These forward-looking statements are based upon the current beliefs and expectations of the management of ALJ and involve risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Many of these risks and uncertainties relate to factors that are beyond ALJ’s ability to control or estimate precisely and include, without limitation: (i) the failure to satisfy any of the conditions to complete the Merger or the tender offer, including Optima securing financing; (ii) the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement or the tender offer or failure of the Merger; (iii) the outcome of any legal proceedings instituted in connection with the proposed Merger or tender offer; and (iv) the effect of any regulatory approvals or conditions imposed in connection with the Merger.

ALJ is also subject to general business risks, including its success in continuing to settle its outstanding obligations from its prior business activities, results of tax audits, its ability to retain and attract key employees, acts of war or global terrorism, and unexpected natural disasters and other risks and uncertainties, including those detailed from time to time in its periodic reports (whether under the caption Risk Factors or Forward Looking Statements or elsewhere). ALJ cannot give any assurance that such forward-looking statements will prove to have been correct. The reader is cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this announcement. Neither ALJ nor any other person undertakes any obligation to update or revise publicly any of the forward-looking statements set out herein, whether as a result of new information, future events or otherwise.

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