Mobile Infrastructure Announces Several Actions to Enhance Shareholder Value
Mobile Infrastructure (NYSE American: BEEP) has announced strategic actions to enhance shareholder value. The company has secured a $40.4 million line of credit from Harvest Small Cap Partners to fund preferred stock redemptions in cash, pay accrued dividends, and initiate a common stock repurchase plan. The Board of Directors has authorized a $10 million share buyback program, reflecting their belief that the stock is undervalued. These actions aim to address the gap between Mobile's Net Asset Value (NAV) of $7.25 per share and its current market price.
The credit facility will help eliminate future dilution from preferred stock conversions and provide capital flexibility. Borrowings under the line of credit will accrue interest at 15.0% per annum. The company's management believes these strategic moves will increase shareholder value and address valuation concerns.
Mobile Infrastructure (NYSE American: BEEP) ha annunciato azioni strategiche per aumentare il valore per gli azionisti. L'azienda ha ottenuto una linea di credito di 40,4 milioni di dollari da Harvest Small Cap Partners per finanziare il rimborso delle azioni preferenziali in contante, pagare i dividendi accumulati e avviare un piano di riacquisto di azioni ordinarie. Il Consiglio di Amministrazione ha autorizzato un programma di riacquisto di azioni da 10 milioni di dollari, riflettendo la loro convinzione che l'azione sia sottovalutata. Queste azioni mirano a colmare il divario tra il Valore Patrimoniale Netto (NAV) di Mobile di 7,25 dollari per azione e il suo attuale prezzo di mercato.
La linea di credito aiuterà ad eliminare eventuali future diluizioni derivanti dalle conversioni delle azioni preferenziali e offrirà flessibilità di capitale. I prestiti sotto la linea di credito accumuleranno interessi al 15,0% annuo. La direzione dell'azienda crede che queste mosse strategiche aumenteranno il valore per gli azionisti e affronteranno le preoccupazioni sulla valutazione.
Mobile Infrastructure (NYSE American: BEEP) ha anunciado acciones estratégicas para aumentar el valor para los accionistas. La compañía ha asegurado una línea de crédito de 40,4 millones de dólares de Harvest Small Cap Partners para financiar el rescate de acciones preferidas en efectivo, pagar dividendos acumulados e iniciar un plan de recompra de acciones ordinarias. La Junta Directiva ha autorizado un programa de recompra de acciones de 10 millones de dólares, reflejando su creencia de que la acción está infravalorada. Estas acciones tienen como objetivo cerrar la brecha entre el Valor Neto de Activos (NAV) de Mobile de 7,25 dólares por acción y su precio de mercado actual.
La línea de crédito ayudará a eliminar futuras diluciones por conversiones de acciones preferidas y proporcionará flexibilidad de capital. Los préstamos bajo la línea de crédito acumularán intereses al 15,0% anual. La dirección de la empresa cree que estos movimientos estratégicos aumentarán el valor para los accionistas y abordarán las preocupaciones sobre la valoración.
모바일 인프라스트럭처(NYSE American: BEEP)는 주주 가치를 높이기 위한 전략적 조치를 발표했습니다. 회사는 Harvest Small Cap Partners로부터 4040만 달러의 신용한도를 확보하여 우선주 상환을 현금으로 지급하고, 발생한 배당금을 지급하며, 보통주 매입 계획을 시작합니다. 이사회는 주가가 과소평가되어 있다고 믿는 것을 반영하여 1000만 달러의 주식 매입 프로그램을 승인했습니다. 이러한 조치는 모바일의 자산 순 가치(NAV)인 주당 7.25달러와 현재 시장 가격 간의 격차를 해소하는 것을 목표로 합니다.
신용 시설은 우선주의 전환으로 인한 향후 희석을 제거하고 자본 유연성을 제공합니다. 신용 한도 아래의 차입금은 연 15.0%의 이자를 누적합니다. 회사 경영진은 이러한 전략적 조치가 주주 가치를 높이고 평가 우려를 해결할 것이라고 믿고 있습니다.
Mobile Infrastructure (NYSE American: BEEP) a annoncé des actions stratégiques pour renforcer la valeur pour les actionnaires. L'entreprise a sécurisé une ligne de crédit de 40,4 millions de dollars auprès de Harvest Small Cap Partners pour financer les rachats d'actions privilégiées en espèces, payer les dividendes accumulés et initier un plan de rachat d'actions ordinaires. Le Conseil d'Administration a autorisé un programme de rachat d'actions de 10 millions de dollars, reflétant leur conviction que l'action est sous-évaluée. Ces actions visent à combler l'écart entre la Valeur Nette d'Actif (NAV) de Mobile de 7,25 dollars par action et son prix de marché actuel.
La facilité de crédit aidera à éliminer la dilution future des conversions d'actions privilégiées et fournira une flexibilité de capital. Les emprunts sous la ligne de crédit porteront intérêt à un taux de 15,0 % par an. La direction de l'entreprise croit que ces mouvements stratégiques accroîtront la valeur pour les actionnaires et répondront aux préoccupations en matière de valorisation.
Mobile Infrastructure (NYSE American: BEEP) hat strategische Maßnahmen zur Steigerung des Aktionärswerts angekündigt. Das Unternehmen hat eine Kreditlinie von 40,4 Millionen Dollar von Harvest Small Cap Partners gesichert, um Rückkäufe von Vorzugsaktien in bar zu finanzieren, aufgelaufene Dividenden zu zahlen und ein Aktienrückkaufprogramm zu initiieren. Der Vorstand hat ein Aktienrückkaufprogramm über 10 Millionen Dollar genehmigt, was ihr Vertrauen widerspiegelt, dass die Aktie unterbewertet ist. Diese Maßnahmen sollen die Lücke zwischen dem Nettovermögenswert (NAV) von Mobile von 7,25 Dollar pro Aktie und dem aktuellen Marktpreis schließen.
Die Kreditfazilität wird helfen, künftige Verwässerungen durch Umwandlungen von Vorzugsaktien zu beseitigen und Kapitalflexibilität bereitzustellen. Die Darlehen gemäß der Kreditlinie werden mit 15,0 % pro Jahr verzinst. Das Management des Unternehmens glaubt, dass diese strategischen Schritte den Aktionärswert erhöhen und Bewertungsprobleme angehen werden.
- Secured $40.4 million line of credit for financial flexibility
- Authorized $10 million share buyback program
- Ability to settle future preferred stock redemptions in cash, eliminating dilution
- Plan to pay all accrued dividends on preferred stock
- Focus on addressing the gap between NAV ($7.25 per share) and current share price
- High interest rate of 15.0% per annum on the line of credit
- Significant dilution from preferred equity conversions over the past year
- Current market price substantially below NAV, indicating potential undervaluation
Insights
The announcement of a
The decision to settle future preferred stock redemptions in cash is a positive step towards stabilizing the share count and potentially improving earnings per share metrics. However, investors should closely monitor the impact of increased interest expenses on the company's financial performance. The
The significant gap between the stated NAV of
The involvement of Jeff Osher, Co-Chairman of the Board, in both the company and the lending entity raises potential conflict of interest concerns. While the credit facility may benefit the company, the
The authorization of a share buyback program demonstrates the board's confidence in the company's valuation, but it's important to ensure that this capital deployment doesn't come at the expense of necessary investments in the business or maintenance of the parking assets. The board's commitment to exploring strategies to narrow the NAV gap is positive, but concrete plans and timelines would provide more assurance to investors.
Overall, while these actions aim to enhance shareholder value, they also highlight the need for robust corporate governance practices and transparent communication with shareholders regarding the company's strategic direction and capital allocation decisions.
Mobile Infrastructure's focus on parking assets presents a unique proposition in the real estate investment landscape. The significant disparity between the company's stated NAV of
Parking assets can be lucrative in prime urban locations but may face challenges from evolving transportation trends and urban planning policies favoring public transit and reduced car usage. Investors should seek more granular information about the location, occupancy rates and long-term contracts associated with Mobile's parking portfolio to better assess its true value and growth potential.
The company's efforts to address shareholder concerns and boost the stock price are commendable. However, a more detailed strategy for optimizing and potentially expanding the parking asset portfolio would provide greater confidence in the company's long-term growth prospects and ability to close the NAV gap.
- New Capital Source Enables Settling Preferred Stock Redemptions for Cash, Eliminating Dilution on the Company’s Shares
-
Mobile’s Board Authorizes a
$10 Million -
Mobile’s Board Will Continue to Explore Strategies to Address the Gap Between Net Asset Value of
$7.25
The Company has secured a
- Provide flexibility to fund future preferred stock redemptions in cash rather than common stock;
- Pay all accrued dividends on the preferred stock to date; and
- Commence a common stock repurchase plan.
Mobile Infrastructure’s Board of Directors also announced that it has authorized a
Jeff Osher, Co-Chairman of the Board of Directors, stated, “The strategic actions announced today demonstrate our Board and management team’s focus on increasing shareholder value. This credit facility provides Mobile with capital flexibility to eliminate future dilution from preferred stock conversions and the associated technical overhang on the stock. The Board’s authorization of a
“We are pleased to address what we believe has been a significant issue impacting the Company’s valuation, namely the preferred equity conversion to common stock over the past twelve months,” noted Stephanie Hogue, Mobile’s President. “Year-to-date, these conversions have been highly dilutive. This additional funding provides Mobile with the necessary resources to settle future preferred share redemptions in cash.”
Borrowings under the Line of Credit will accrue interest at a rate of
Forward-Looking Statements
Certain statements contained in this press release are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. All statements included in this press release that are not historical facts (including any statements concerning our net asset value, our share repurchase program, our assessment of various trends impacting the price of our shares of common stock, other plans and objectives of management for future operations or economic performance, or assumptions or forecasts related thereto) are forward-looking statements. Forward-looking statements are typically identified by the use of terms such as “may,” “should,” “expect,” “could,” “intend,” “plan,” “anticipate,” “estimate,” “believe,” “continue,” “predict,” “potential” or the negative of such terms and other comparable terminology.
The forward-looking statements included herein are based upon the Company’s current expectations, plans, estimates, assumptions and beliefs, which involve numerous risks and uncertainties. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the Company’s control. Although the Company believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, the actual results and performance could differ materially from those set forth in the forward-looking statements. Factors which could have a material adverse effect on operations and future prospects include, but are not limited to the fact that we previously incurred and may continue to incur losses, we may be unable to achieve our investment strategy or increase the value of our portfolio, our parking facilities face intense competition, which may adversely affect rental and fee income, we may not be able to access financing sources on attractive terms, or at all, which could adversely affect our ability to execute our business plan, and other risks and uncertainties discussed in the section titled “Risk Factors” of our final prospectus, filed with the Securities and Exchange Commission (the “SEC”) pursuant to Rule 424(b) under the Securities Act of 1933 on April 12, 2024, in connection with our registration statement on Form S-11 and subsequent filings the Company makes with the SEC from time to time, particularly under the sections titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” including the Company’s Annual Report on Form 10-K, filed with the SEC on March 22, 2024 and Quarterly Reports on Form 10-Q.
Any of the assumptions underlying the forward-looking statements included herein could be inaccurate, and undue reliance should not be placed upon any forward-looking statements included herein. All forward-looking statements are made as of the date of this press release, and the risk that actual results will differ materially from the expectations expressed herein will increase with the passage of time. Except as otherwise required by the federal securities laws, the Company undertakes no obligation to publicly update or revise any forward-looking statements made after the date of this press release, whether as a result of new information, future events, changed circumstances or any other reason. In light of the significant uncertainties inherent in the forward-looking statements included in this press release, the inclusion of such forward-looking statements should not be regarded as a representation by us or any other person that the objectives and plans set forth in this press release will be achieved.
About Mobile Infrastructure Corporation
Mobile Infrastructure Corporation is a
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Mobile Contact
David Gold
Lynn Morgen
beepir@advisiry.com
(212) 750-5800
Source: Mobile Infrastructure Corporation
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