Innovex International, Inc., a company specializing in oil and gas field machinery and equipment, has extended the contract of its former Vice President and Chief Financial Officer, Kyle McClure. The agreement, originally set to expire on Monday, was extended through November 8, 2024, as per a recent SEC filing.
This extension follows the completion of Innovex's business combination with Innovex Downhole Solutions, Inc. on September 6, 2024, which resulted in a class action lawsuit filed by Steamfitters Local 449 Pension Fund. The lawsuit challenged certain shareholder voting requirements and transfer restrictions related to the merger.
Innovex, without admitting any wrongdoing, has settled the litigation by agreeing to pay $540,000 in attorneys' fees and expenses. The settlement, reached through negotiations and covered by the company or its insurers, resolves the claims without court judgment on the mootness fee.
The company, formerly known as Dril-Quip (NYSE:INVX) Inc., had amended the contentious shareholder agreement in May, removing the challenged provisions. This amendment led to the dismissal of the action as moot, with the court retaining jurisdiction over the attorney's fees.
In other recent news, Innovex International has witnessed significant developments. The company recently completed its merger with Dril-Quip, Inc., forming a new entity projected to generate substantial growth, cash flow, and returns for shareholders. The merger is expected to deliver nearly $30 million in annual cost savings and maintain a net cash position of around $100 million post-transaction.
Innovex International has also appointed PricewaterhouseCoopers LLP (PwC) as its new independent registered public accounting firm, replacing Grant Thornton LLP. This decision follows a reverse acquisition, with Innovex's financial statements becoming the historical consolidated financial statements of the newly named Innovex International.
The company has engaged its former CFO, Kyle McClure, as an independent contractor for a financial settlement. His compensation will be a fixed monthly rate of $10,000, with an additional $10,000 for any overseas business trip at the company's request.
Dril-Quip shareholders have approved key merger proposals, and the merger terms have been amended, waiving the need for Dril-Quip stockholder approval on certain governance changes. This reflects the companies' commitment to strong corporate governance.
In addition, Dril-Quip has expanded its Board of Directors with the appointment of Benjamin M. Fink, a veteran in the energy and finance sectors. These are the recent developments in Innovex International.
InvestingPro Insights
As Innovex International, Inc. (INVX) navigates its post-merger landscape and legal resolutions, InvestingPro data offers additional context to the company's financial position. With a market capitalization of $991.55 million, Innovex operates with a moderate level of debt, which aligns with its recent settlement of $540,000 in legal fees without apparent financial strain.
InvestingPro Tips highlight that Innovex's cash flows can sufficiently cover interest payments, and its liquid assets exceed short-term obligations. These factors suggest a solid financial foundation as the company moves forward from its recent merger and litigation.
The company's profitability over the last twelve months is reflected in its adjusted P/E ratio of 14.92, indicating a reasonable valuation relative to earnings. However, investors should note that the stock is trading near its 52-week low, with the price at 55.48% of its 52-week high. This could present an opportunity for value investors, especially considering the InvestingPro Fair Value of $16.24, which is above the current trading price.
For those interested in a deeper analysis, InvestingPro offers 7 additional tips for Innovex, providing a more comprehensive view of the company's financial health and market position.
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