Their captain was killed in a duel, and was also at that point technically an iron warrior. So merely a change in leadership. I have no qualms w 7th company having termis, but to have them in numbers that rival first company or even beyond one or two squads seems a bit ludicrous. And why would the warsmith allow two such staunch gene purists to live when they are essentially against his ethos? If there is some civil war story arc then sure, but otherwise it seems...unwieldy. also while we're discussing this, what are the numbers of each company?