The filing represents an amendment to their loan agreement which allows for $28 mil to be used for a buyback should management choose to initiate.Very similar to what Zagg did late last year. Certainly indicates that management believes their stock is undervalued. Good move for investors, but even a better move for the insiders considering how much stock they own.
What interests me most is who is AG Acquisition Corporation, as they are co signers on the borrowing? The CFO signed on their behalf, but who else is part of this group.....?
Anyway, we'll hear more on the earnings call, but a very solid move by management which should be received favorably.
Chaz, "perhaps" the AG Aquisition Company is their (SKUL insiders) newly formed enity to take SKUL back private? I was under the impression that Wescoat had a history of doing private equity buyouts (perhaps I am mistaken). The real float is like 9 million shares at 7 bucks a share, they could get 4 million shares.
Something is oing on... Your right, it will be announced at the EC.
Surprised no one picked this up in the media Friday or Today. I just happened on it as I have been checking on if Andrus filed a sale this month (he hasn't yet). Perhaps our boys are finally going to fight this stock decline?
Lets hope, It's about time. If this doesn't change I'm exercising my 25,000 votes against any pay raises or stock option... I would hope others would too.
I know in the original IPO filings, it was made pretty clear in the SEC forms that due to credit facilities, SKUL could not and had no immediate intentions to, declare a dividend and I am pretty sure there was a statement on buyback. Of course the company now has cash and relayed (rather quick) their debt.
I was suspecting and commented in an earlier post this year that that filing had o be amended in order for there to be any announcement. I saw a ton of so called "writers" saying they shoud over the last few months, but they legally couldn't.
I believe this is a change in the loan agreements allowing them some flexibility to proceed forward with a buy-back or private equity accumulation.
I'm pretty sure they still can not declare a dividend, but the rewording perhaps is a stepping stone towards clearing that.
I have read a zillion contracts in my days and I have to say that these SEC filings are pretty hard to decipher.
Either way, it was filed and an 8-K usually represents important legal obligations regarding earnings etc.