Hollund’s Market Doesn’t Nudge As Company’s Fundamentals Begin to Strengthen – Even With News of a Preferred C Overhaul
Did you hear…? “ Hollund Industrial Marine Enters Negotiations to Restructure Preferred C Shareholder . ” “Huh? Duh…? Which way do I go?” seemed to be the market’s reaction yesterday to this press.
Despite this news, HIMR’s market continues to reflect a ‘No Bid.’ Adding insult to injury, the ‘Offer’ seems to continually stack with $0.0001 offers. Face it, the market failed to reflect the importance and relevance of this news. This now makes three major company press releases and the stock remains less than impressive. How is this even possible…? The culprit seems obvious… the Preferred C shares.
First…, it seems apparent that the conversions of Preferred C shares were for the primary holder’s own benefit. But, how do you know?
Hollund does a reasonably good job at keeping its disclosures current (http://www.otcmarkets.com/stock/HIMR/filings). There is little by way of new debt issuances added to the company’s books; particularly by the major Preferred C shareholder. This would suggest the holder of this stock did not give the company any money from their conversions.
Anytime a company has the opportunity to restructure any kind of toxic position, it is a very good thing. It wards off future dilution of the stock, which is especially important when the conversion feature is of an obscene rate, such as that of Hollund’s Preferred C shares.
One of the most important steps for a public company’s growth is to manage its capitalization structure. But, this is no easy task. It means controlling the ‘overhang’ [meaning what is out there against them in convertible notes and/or shares] while trying to raise money, attract talent and grow a company.
Mr. Lonnie Hayward (TigerLynk patent holder), by his own words is excited to be on board with the restructuring of his Preferred C shares.
Lonnie Hayward stated, “I have been a long time supporter of Hollund Industrial Marine and I am extremely excited with the direction HIMR is heading. I feel so strongly about what I see, that I have agreed to a radical adjustment to my Preferred C shares. This will be for the greater good of Hollund as well as every shareholder. I feel Hollund is positioned like never before, and I will not be the one to stand in the way of Hollund being able to realize its goals. I am willing to help in whatever way I am able, to ensure the success of this great Company.”
‘ Gee…, thanks guy. After the market has been flooded with stock ,’ presumably the sentiments of most. Well, you know what they say…, better late than never .
We know based on activity, the market just did not receive the company’s news as positive. But it really is. Simply read their financials. Understand how important this Preferred C share restructuring is to the company and its shareholders. Then ask yourselves an even more important question, what did Peter Meier mean by, “Once this task is complete, we will focus our attention on the Company’s share structure … “this process will give each shareholder an increased benefit with greater upside potential for each share owned”?
© Copyright 2013 OTC News Magazine. All rights reserved.
