On June 13, 2016, SAIL Capital Management LLC disclosed that it plans to use every lawful means to effectuate substantial changes in the composition of the Board of Directors of Ener-Core, Inc., including, but not limited to, the replacement of the majority of existing directors and management. Further, SAIL Capital urged Ener-Core to replace its Chairman Mike Hammons and its CEO Alain Castro immediately stating that they have both consistently failed during the three year terms of their tenure to achieve any significant revenues or market penetration. SAIL Capital continued that the Company stock price has declined over 95% on their watch at the same time as they diluted SAIL’s percentage ownership dramatically from 48% to 15.62% for no reason related to building shareholder value. SAIL Capital added that during this time while they were destroying shareholder value, they were taking excessive management compensation and expense reimbursements. Further, SAIL Capital criticized that Alain Castro is an absentee CEO who is rarely present at company headquarters or operations. Further, SAIL Capital demanded the Company to name Ian Copeland the Chairman of the Board of Directors and then launch a search for a new CEO.