LiveOne Reports $11.3M Series A Preferred Stock Conversion To Common Stock At $2.10/Share; Led By Harvest Small Cap Partners Master And Trinad Capital Master Fund
Portfolio Pulse from Benzinga Newsdesk
LiveOne announced the conversion of $11.3M Series A Preferred Stock to Common Stock at $2.10/share, led by Harvest Small Cap Partners Master and Trinad Capital Master Fund. This conversion eliminates $2.0M of annual cash dividends and $5M of redeemable mezzanine equity, broadens institutional ownership to approximately 35%, and makes LiveOne eligible to join the Russell 2000 in May 2024.
April 03, 2024 | 12:39 pm
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LiveOne's conversion of Series A Preferred Stock to Common Stock at $2.10/share eliminates $2.0M in annual dividends and $5M in mezzanine equity, increases institutional ownership to ~35%, and sets the stage for potential inclusion in the Russell 2000 by May 2024.
The conversion of preferred to common stock is generally seen as a positive move for companies, as it often leads to a reduction in financial obligations (in this case, annual dividends and mezzanine equity) and can signal confidence in the company's future prospects. The increase in institutional ownership and the potential inclusion in the Russell 2000 index could attract more investors, likely leading to a positive short-term impact on LiveOne's stock price.
CONFIDENCE 85
IMPORTANCE 90
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