Why CalAmp (CAMP) Stock Is Down 50%
Portfolio Pulse from Henry Khederian
CalAmp Corp (NASDAQ:CAMP) shares dropped by 53% to $1.25 after announcing a Restructuring Support Agreement with Lynrock Lake Master Fund LP, which will take the company private. CalAmp will convert $229 million of Convertible Senior Secured Notes into equity and has initiated Chapter 11 bankruptcy proceedings to facilitate the transaction.
June 03, 2024 | 2:04 pm
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CalAmp Corp (NASDAQ:CAMP) shares fell by 53% to $1.25 after announcing a Restructuring Support Agreement with Lynrock Lake Master Fund LP, which will take the company private. The company will convert $229 million of Convertible Senior Secured Notes into equity and has initiated Chapter 11 bankruptcy proceedings to facilitate the transaction.
The significant drop in share price is directly related to the announcement of the Restructuring Support Agreement, the conversion of debt to equity, and the initiation of Chapter 11 bankruptcy proceedings. These actions indicate financial distress and uncertainty, leading to a negative short-term impact on the stock price.
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