NEW YORK - INNOVATE Corp. (NYSE: VATE), a diversified holding company, has announced the pricing for its upcoming rights offering. Holders of the company’s common stock as of today will receive one transferable subscription right for every 0.2858 shares owned, at a purchase price of $0.70 per whole share.
The rights offering also extends to holders of INNOVATE's preferred stock and convertible notes, provided they are eligible for dividend distributions akin to common stockholders. The offer is set to expire at 5:00 PM Eastern Time on March 25, 2024, with the possibility of an extension at the company's discretion.
Subscription rights certificates and prospectus supplements detailing the offering terms are expected to be mailed to stockholders on record beginning March 8, 2024. This rights offering is following INNOVATE’s shelf registration statement filed on September 29, 2023, and declared effective on October 6, 2023.
INNOVATE Corp. operates in infrastructure, life sciences, and spectrum sectors, employing around 4,000 people across its subsidiaries.
The information disclosed is based on a press release statement from INNOVATE Corp.
InvestingPro Insights
As INNOVATE Corp. (NYSE: VATE) gears up for its rights offering, investors are closely monitoring the company's performance metrics. Reflecting on recent market activity, InvestingPro Tips highlight that the stock has experienced a significant return over the last week, with a price total return of 19.37%. This surge could be indicative of market optimism surrounding the rights offering or other internal developments.
However, it's important to note that INNOVATE's stock has shown high price volatility, which is a trend that investors should consider, especially in light of the upcoming rights offering. This characteristic is underscored by the stock's 1-month and 3-month price total returns of -13.0% and -35.56%, respectively, illustrating the stock's recent challenges.
In terms of financial health, InvestingPro Data reveals that INNOVATE has a market capitalization of $68.93 million, but it has not been profitable over the last twelve months, with a P/E ratio of -1.81. The company's revenue in the last twelve months as of Q3 2023 stood at $1.471 billion, although it saw a decrease of 9.34% compared to the previous period. This decline in revenue, coupled with a gross profit margin of 14.8%, may raise concerns about the company's ability to generate sufficient profit from its sales.
For investors seeking a deeper dive into INNOVATE's financials and stock performance, additional InvestingPro Tips are available at https://www.investing.com/pro/VATE. And for those considering a subscription, use the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are a total of 10 additional tips listed in InvestingPro that could provide further insights into INNOVATE's investment potential.
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