Transcat Said On September 11, Entered Into Amendment To A Share Purchase Agreement Dated August 31, 2021; Said Expects That Its Total Earn-out Obligations Under Amendment Will Be Between $3.7M And $4.5M; Expects One-time Reduction Of Net Income Of $2.7M to $3.4M For Quarter Ending September 23
Portfolio Pulse from Charles Gross
Transcat has entered into an amendment to a share purchase agreement dated August 31, 2021. The company expects its total earn-out obligations under the amendment to be between $3.7M and $4.5M. This is expected to result in a one-time reduction of net income of $2.7M to $3.4M for the quarter ending September 23.
September 12, 2023 | 10:20 am
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Transcat's amendment to a share purchase agreement is expected to lead to a one-time reduction in net income of $2.7M to $3.4M for Q3.
The amendment to the share purchase agreement will increase Transcat's earn-out obligations, which will directly impact the company's net income. This is expected to result in a one-time reduction in net income for the quarter ending September 23, which could negatively affect the company's stock price in the short term.
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