Chairman Russell Horowitz Increases Stake to 18.5% via $4.9M Convertible Notes from Archenia Acquisition

summarizeSummary

Marchex Chairman Russell C. Horowitz significantly increased his beneficial ownership to 18.5% of the company's shares by acquiring $4.9 million in convertible notes as part of the recently completed Archenia acquisition.

check_boxKey Events · Ownership and Investor Activity · MCHX

• Chairman's Stake Increase

  Russell C. Horowitz's beneficial ownership in Marchex increased to 8,813,485 shares, representing 18.5% of the outstanding Class B Common Stock.

• Acquisition of Convertible Notes

  The increase stems from acquiring $4.9 million in convertible promissory notes, initially convertible into 2,702,703 shares at $1.80 per share.

• Archenia Acquisition Consideration

  These notes were received as consideration for Marchex's acquisition of Archenia, Inc., where Mr. Horowitz was a seller, aligning his interests with the company's strategic move.

• Potential Future Share Issuance

  Additional performance-based shares (up to 972,973 for each of two 12-month periods) may be issued to Mr. Horowitz based on Archenia's future revenue or Adjusted EBITDA targets.

auto_awesomeAnalysis · MCHX · Technology

This filing details a significant increase in Chairman Russell C. Horowitz's beneficial ownership, now totaling 18.5% of Marchex. This substantial stake, acquired through convertible notes as part of the Archenia acquisition, demonstrates a strong alignment of interests between a key insider and the company's strategic direction. While the acquisition itself involves dilution, Mr. Horowitz's decision to take a large portion of his payment in Marchex securities signals his confidence in the combined entity's future performance.