Melrose Ventures Group Calls for Accountability from Hank Management Amid Ongoing Shareholder Concerns
Melrose Ventures Group has expressed serious concerns about Hank's management's recent decisions and lack of transparency. The key issues include a controversial proposed acquisition that would give away 49% ownership for assuming $1M in debt, potential shareholder dilution of approximately 80% through convertible debt modifications, and management's refusal to engage in dialogue with shareholders. Melrose's tender offer stands at 9 cents per share, offering an 80% premium over management's proposed 5 cents per share pricing. The company has experienced a 95% stock decline since going public in October 2021, with stagnant customer base and revenue growth.
Melrose Ventures Group ha espresso gravi preoccupazioni riguardo alle recenti decisioni e alla mancanza di trasparenza da parte della gestione di Hank. Le questioni chiave includono un'acquisizione proposta controversa che comporterebbe la cessione del 49% della proprietà in cambio dell'assunzione di un debito di 1 milione di dollari, una potenziale diluizione degli azionisti di circa l'80% attraverso modifiche al debito convertibile, e il rifiuto della gestione di avviare un dialogo con gli azionisti. L'offerta pubblica di acquisto di Melrose è fissata a 9 centesimi per azione, offrendo un premio dell'80% rispetto al prezzo proposto dalla gestione di 5 centesimi per azione. L'azienda ha registrato una diminuzione del 95% delle azioni da quando è diventata pubblica nell'ottobre 2021, con una base clienti e una crescita dei ricavi stagnanti.
Melrose Ventures Group ha expresado serias preocupaciones sobre las recientes decisiones de la gestión de Hank y la falta de transparencia. Los problemas clave incluyen una adquisición propuesta controvertida que cedería el 49% de la propiedad a cambio de asumir $1M en deudas, una posible dilución de los accionistas de aproximadamente el 80% a través de modificaciones a la deuda convertible, y la negativa de la gestión a entablar un diálogo con los accionistas. La oferta de compra de Melrose se sitúa en 9 centavos por acción, ofreciendo una prima del 80% sobre el precio propuesto por la gestión de 5 centavos por acción. La compañía ha experimentado una caída del 95% en sus acciones desde que salió a la bolsa en octubre de 2021, con una base de clientes y crecimiento de ingresos estancados.
멜로즈 벤처스 그룹은 행크 경영진의 최근 결정과 투명성 부족에 대해 심각한 우려를 표명했습니다. 주요 문제는 100만 달러의 부채를 인수하는 대가로 49%의 소유권을 넘겨주는 논란이 있는 인수 제안, 전환사채 수정에 따른 약 80%의 주주 희석 가능성, 그리고 경영진이 주주와의 대화에 나서기를 거부한 것입니다. 멜로즈의 공개 매수 제안가는 주당 9센트로, 경영진이 제안한 주당 5센트 가격에 비해 80%의 프리미엄을 제공합니다. 이 회사는 2021년 10월 상장 이후 주가가 95% 하락했으며, 고객 기반과 수익 성장도 정체된 상태입니다.
Melrose Ventures Group a exprimé de vives inquiétudes concernant les décisions récentes de la direction de Hank et le manque de transparence. Les principales problématiques incluent une proposition d'acquisition controversée qui céderait 49% de la propriété en échange de l'assumption d'une dette d'1 million de dollars, une dilution potentielle des actionnaires d'environ 80% par le biais de modifications de la dette convertible, et le refus de la direction d'engager un dialogue avec les actionnaires. L'offre publique d'achat de Melrose est fixée à 9 cents par action, offrant une prime de 80% par rapport au prix proposé de 5 cents par action par la direction. L'entreprise a connu une baisse de 95% de ses actions depuis son introduction en bourse en octobre 2021, avec une base de clients et une croissance des revenus stagnantes.
Melrose Ventures Group hat ernsthafte Bedenken hinsichtlich der jüngsten Entscheidungen des Managements von Hank und des Mangels an Transparenz geäußert. Die Hauptprobleme umfassen einen umstrittenen, vorgeschlagenen Erwerb, der 49% der Eigentumsanteile im Austausch für die Übernahme von 1 Million Dollar Schulden abgeben würde, eine potenzielle Verwässerung der Aktionäre von etwa 80% durch Änderungen der wandelbaren Schulden sowie die Weigerung des Managements, in einen Dialog mit den Aktionären zu treten. Das Übernahmeangebot von Melrose liegt bei 9 Cent pro Aktie, was eine Prämie von 80% gegenüber dem von der Geschäftsführung vorgeschlagenen Preis von 5 Cent pro Aktie bedeutet. Das Unternehmen hat seit dem Börsengang im Oktober 2021 einen Rückgang des Aktienkurses um 95% erlebt, während die Kundenbasis und das Umsatzwachstum stagnieren.
- Melrose's tender offer provides 80% premium at 9 cents per share compared to management's 5 cents proposal
- Existing customer base of 42,000 remains stable
- 95% stock price decline since October 2021 IPO
- Proposed acquisition would give away 49% ownership for just $1M debt assumption
- Planned convertible debt modifications could dilute shareholders by 80%
- No meaningful revenue growth since 2018
- Management's proposed 50% decrease in convertible debt conversion price would add 50M new shares
- New convertible securities at 5 cents conversion price threaten further dilution
NAPLES, FL / ACCESSWIRE / November 6, 2024 / Melrose Ventures Group expresses deep concern regarding the recent press release from Hank's management, which stated they would not respond further to inquiries from Melrose. This decision reflects a troubling pattern of evasiveness and lack of transparency that has persisted over the past seven years.
Despite numerous attempts to engage with management, including a recent request for a shareholder meeting on October 21, 2024, Hank's leadership has consistently failed to acknowledge calls for dialogue. This includes attempts to block shareholders from attending meetings and addressing critical issues that could significantly impact the company's future.
Key Issues Raised by Melrose Ventures Group:
Proposed Acquisition: The management's plan to acquire a company with no revenue and unproven technology raises serious concerns. In exchange for assuming
$1 million of the target's debt, Hank would relinquish49% ownership, jeopardizing shareholder value without a clear path to profitability.Convertible Debt Concerns: The proposed
50% decrease in the existing convertible debt conversion price would increase shares outstanding by 50 million, diluting current shareholders at a time when the existing debt is manageable.Issuance of New Converts: The introduction of new convertible securities at a conversion price of 5 cents is viewed as irresponsible and highly dilutive, further threatening shareholder equity.
Management Accountability: There is a pressing need to replace the current management team with individuals who have a proven track record of building and growing the company. The original founders, who successfully established a customer base of 42,000, are better positioned to lead Hank towards profitability.
Shareholder Dilution: Current management's actions could dilute existing shareholders by approximately
80% , with no foreseeable benefits.Tender Offer: The Melrose Group takeover Tender Offer is for 9 cents per share, offering existing shareholders an
80% premium and an attractive alternative to the proposed acquisition pricing at 5 cents per share causing approximately80% dilution to current shareholders at all time stock price lows, which Hank Payment Corp's management is trying to force existing shareholders to accept without shareholder approval.
Historical Context of Management Performance:
Since taking over in 2018, Hank's management has overseen a
Melrose Ventures Group urges Hank's management to reconsider their approach and engage constructively with shareholders. Transparency and accountability are essential for restoring confidence and ensuring the long-term success of the company.
For further information, please contact:
For any questions, please contact Michael Trimarco, Principal of Melrose Ventures & Intelligent Payment Processing, at 516-848-3388.
SOURCE: Melrose Ventures
View the original press release on accesswire.com
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