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ModusLink Global Solutions, Inc. Message Board

  • spook2b spook2b Jul 7, 2014 9:23 AM Flag

    MLNK files for up to $100M mixed shelf

    On July 7, 2014, ModusLink Global Solutions, Inc. (the "Company") filed a registration statement on Form S-3 covering the potential sale, from time to time, of up to $100.0 million of securities, including common stock, preferred stock, senior and subordinated debt securities, and warrants to purchase any of the other securities that can be sold pursuant to the prospectus contained in the registration statement. The Company believes that the registration statement provides quick access to capital markets when needed and greater financial flexibility to the Company and the Borrowers and may enhance their ability to consummate one or several larger and/or more attractive acquisitions and should provide our clients and/or potential clients with greater confidence in the Company's and the Borrowers' liquidity.
    --------------------------------------
    So it looks as if we may be seeing a deal of some kind at some point in the future...

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    • phyllandwalt@sbcglobal.net phyllandwalt Jul 7, 2014 4:02 PM Flag

      What the frig is going on pay the ceo bonus or a nother reverse stock split that would be 13 to 1 this company looks out for them selvs {{{{{{{ not the frigon share holder}}}}}}}}}}}. Try making mony instead borowing still cant spell? If i get even say good by to this dog??

      Sentiment: Strong Sell

    • This seems big news...but as always with this stock no reaction...in my mind the bigger the better...a $200 million cash deal? or leverage that for something in the $500 million range...you start to realize those tax benefits very quickly...tons of value in the tax benefits...GO Mlnk

      • 3 Replies to investing777cpa
      • cpa, I've seen an SEC interpretation of the NOL rule (Section 382, I believe) which states something to the effect that if a large holder increases their holdings (I seem to remember by 50%), that would be considered a "change of control" and would affect their ability to utilize the NOLs. It occurs to me that IF the company issues more common shares under this filing, then the percentage of Steel Partners ownership stake in MLNK would actually decrease (theoretically enabling them to purchase more shares without exceeding whatever the guideline is).

        Not sure if that is part of the plan here. The stock's price reaction to this latest shelf filing is very tame compared to the previous one, which makes me wonder.

        I believe the next earnings report is due on or about Sep 9, at which point we might be able to gauge the impact of the loss of some business on the bottom line. I guess it's possible that management might act on an acquisition before that time as fedele suggests. I did find this clip in combing through their S-3 filing with the SEC (page3) :

        Use of Proceeds
        Unless otherwise indicated in any applicable prospectus supplement, the net proceeds from any sale of securities by us will be used for general corporate purposes, which may include potential acquisitions and other strategic business opportunities. No material acquisitions are probable at this time. If we decide to use the net proceeds from a particular offering of securities for a specific purpose other than as set forth above, we will describe that in the related prospectus supplement.

        The phrase "No material acquisitions are probable at this time." seems to indicate that they aren't in the process of anything at present, but it's hard to get a read on how long "this time" might last.

      • perhaps or they're just getting ready to give themselves big bonuses....

      • agreed. I forsee announcement before end of summer. stock will react violently upwards.

 
MLNK
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