Savvy Trades and Investments

[littlefish]

STCN- No I don’t believe so. There was the stock transfer that was valued at that, then STCN monetized those transferred shares. Was a smart tax move by SPHG but threw minority holders under the bus. The cash is already on the balance sheet, ripe for the picking by the majority holders and their ideas lol.

I haven’t looked hard but that was my understanding reading it. I was looking at page 49-50 in last annual.

Basically I think that conversion price was the value considered in transferring those shares of the acquired company IIRC.

“ Following approval of the Nasdaq Proposal by the Steel Connect stockholders (the “Stockholder Approval”), the Series E Convertible Preferred Stock became convertible into an aggregate of 19.8 million shares of the Common Stock, and votes together with the Common Stock and participates in any dividends paid on the Common Stock, in each case on an as-converted basis. Refer to Note 25 - "Related Party Transactions" for more information on the Voting Agreement.”

So basicallly Steel partners already paid the $10.27 conversion price thru the stock transfer was how I was reading it.

All IMO only.