MIND - MIND Technology: Preferred Stockholders Should Vote For Proposed Common Share Conversion
2024-06-17 22:23:41 ET
Summary
- MIND Technology reported uninspiring Q1/FY25 results, with revenues and backlog down sequentially as well as materially negative free cash flow.
- However, MIND Technology's business prospects have improved in recent quarters. The company expects fiscal year 2025 to be a year of continued growth and increased profitability.
- The company has proposed to convert all outstanding preferred stock into approximately 6.6 million new common shares.
- The proposal requires approval of 2/3 of the preferred shares, thus resulting in a very high hurdle.
- At least in my opinion, preferred shareholders should consider voting for the proposal in order to clean up the capital structure and remove a long-standing overhang.
Note:
MIND Technology, Inc. ( MIND , MINDP ) has been covered by me previously, so investors should view this article as an update to my earlier work on the company. ...
MIND Technology: Preferred Stockholders Should Vote For Proposed Common Share Conversion