01:39 PM EDT, 06/14/2024 (MT Newswires) -- Neo Performance Materials ( NOPMF ) on Friday surged over 15% on last look after launching a strategic review process to boost a share price that has dropped 13% over the past 12 months and could end with the sale of the company.

The rare-earths magnets producer said a special board committee will consider options including "the sale, divestiture, merger, or other business combination of a portion of Neo's business-unit assets, strategic investments, partnerships or joint ventures, changes in Neo's capital structure, capital allocation, or other transactions".

The company will also take a look at compensation plans and practices as part of the review process.

"The board and management team of Neo are committed to investigating opportunities to maximize value for all shareholders. Neo's business continues to perform well, with a strong balance sheet, and solid bottom line performance. While the board believes the company's valuation will, in time, reflect the true value of its business, a thorough review of strategic alternatives is a prudent step to enhance that process," board chair Claire Kennedy said in a release.

Neo also said following consultation with Hastings Technology Metals, a significant shareholder, the board decided to appoint John McGarva as a director before the release of the second-quarter results. McGarva recently retired as Head of Engineering at Dyson, where he led the design engineering of the company's entire haircare product line, guiding teams in Singapore , the Philippines , and the UK.

Hastings and McGarva confirmed that he is independent of Hastings and the review is not being undertaken at Hasting's request.

Neo shares were last seen up $1.17 to $8.55 on the Toronto Stock Exchange.

Price: 8.50, Change: +1.12, Percent Change: +15.18