Horizon Kinetics Holding Corp, formerly known as Scott's Liquid Gold-Inc., has completed a series of transformative corporate actions, including a merger, a reverse stock split, and a change of state incorporation. This series of events, reported in an SEC filing on August 7, 2024, has significantly reshaped the company's structure and shareholder base.
On August 1, 2024, Horizon Kinetics, through a merger with Horizon Kinetics, LLC, and its wholly owned subsidiary HKNY One, LLC, expanded its equity base by issuing 17,984,253 new shares, representing a 96.5% stake post-merger. This effectively diluted the existing shareholders to a collective 3.5% holding. The share issuance was based on Horizon Kinetics' tangible net assets and the value of its operating business.
Concurrent with the merger, the company executed a 1-for-20 reverse stock split, reducing the number of shares outstanding and increasing the per-share value of the remaining stock. This move was part of a broader reorganization that saw the company reincorporate from Colorado to Delaware, adopt a new set of bylaws, and change its name to Horizon Kinetics Holding Corp. The company's principal executive offices were also relocated to New York, New York.
The reorganization and merger have resulted in a change of control, with significant stakes now held by Horizon Kinetics members. Directors Murray Stahl, Steven Bregman, and Peter Doyle, along with Horizon Common Inc. and John Meditz, now own substantial portions of the company's common stock.
The board of directors underwent a major reshuffle, with the appointment of six new members, including the aforementioned Stahl, Bregman, and Doyle. The board also named Stahl as Chairman and is expected to announce committee appointments soon.
Management changes accompanied the board's restructuring, with David Arndt stepping down as President and Chief Financial Officer of Scott’s. The board appointed new executive officers, including Stahl as Chief Executive Officer and Chief Investment Officer, Bregman as President, and Doyle as Vice President.
InvestingPro Insights
As Horizon Kinetics Holding Corp navigates through its corporate transformation, the latest financial metrics provide insight into the company's financial health and market performance. According to real-time data from InvestingPro, Horizon Kinetics' revenue for the last twelve months as of Q4 2023 stands at $0.29 million, with a substantial gross profit margin of 100%. The revenue growth rate for the same period is an impressive 27.92%, indicating a strong upward trend.
However, InvestingPro Tips suggest caution for potential investors. The company's short-term obligations exceed its liquid assets, which might present liquidity risks. Additionally, the valuation implies a poor free cash flow yield, which could impact the company's ability to generate enough cash to support operations and expansions. It's also noteworthy that Horizon Kinetics has not been profitable over the last twelve months.
InvestingPro provides additional tips for investors to consider, which could be accessed for a deeper analysis of Horizon Kinetics' financial outlook and investment potential. This information could be particularly valuable as the company continues to reshape its structure and aims for future growth.
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