$20M Dutch Auction Tender at Up to $3.40/Share, Plus Preliminary Q3 Profit
INVE is trading near its 52-week low of $2.211 (3.6% above the low) on light trading volume (0.1× avg).
Summary
INVE launched a modified Dutch auction self-tender for up to $20 million of stock at $2.85-$3.40 a share, a premium to the $2.22 close on October 20. If fully subscribed, that retires roughly 24.7% to 29.4% of shares outstanding, funded from $87.1 million of cash on hand. It is part of the previously authorized $40 million buyback and follows the September 15 close of the Trackonomy IoT sale that left the company renamed and cash-rich. Separately, preliminary Q3 revenue is $2.9-$3.1 million with net income of $0.4-$0.8 million, or EPS of 1 cent to 2 cents, a swing to profit after the asset sale, though gross margin is thin at 18-19%. Directors and officers said they will not tender. Final Q3 results are due around November 12; the tender expires November 19 unless extended.
At the time of this announcement, INVE was trading at $2.29 on NASDAQ in the Technology sector, with a market capitalization of approximately $53.8M. The 52-week trading range was $2.21 to $5.30. This news item was assessed with neutral market sentiment and an importance score of 8 out of 10. Source: PR Newswire.