MIND Technology, Inc. (NASDAQ:MIND), a provider of sophisticated sonar and seismic equipment, has initiated a process to amend the Certificate of Designations for its preferred stock. On August 8, 2024, the company reached out to certain preferred stockholders to gather votes in favor of the proposed amendment.
The company, headquartered in The Woodlands, Texas, is known for its advanced navigation and aeronautical systems. The letters sent to stockholders are part of a solicitation material pursuant to Rule 14a-12 under the Exchange Act, as indicated in their recent SEC filing.
The details of the amendment have not been disclosed in the press release statement. However, the company has made it clear that the information provided, including the letters referenced as Exhibits 99.1 and 99.2, are furnished and not filed. Therefore, they will not be incorporated by reference into any filing under the Exchange Act or the Securities Act unless specifically identified.
In addition to the proposed amendment, the filing included cautionary notes regarding forward-looking statements. These statements reflect the company's current expectations and are subject to risks and uncertainties that may cause actual results to differ.
MIND Technology cautioned that these forward-looking statements should not be regarded as a representation by the company or any other person that the objectives and plans will be achieved.
Investors are reminded that the information is based on the company's most recent 8-K filing with the SEC. The company has not provided further details on the potential impact of the amendment or the likelihood of its approval. The outcome of the solicitation process and the subsequent effect on the company's preferred stock will be closely monitored by investors and market analysts.
MIND Technology's actions remain in compliance with regulatory requirements, and further developments will be disclosed in accordance with SEC regulations.
In other recent news, MIND Technology has deferred its quarterly cash dividend for its 9.00% Series A Cumulative Preferred Stock for the eighth consecutive quarter. This decision affects the second quarter of the fiscal year ending January 31, 2025.
Due to the cumulative nature of the dividend, payments continue to accrue and are expected to be paid in the future. As a result of the continued deferral, holders of the Series A Preferred Stock now have the right to appoint two directors to MIND Technology's Board.
In other developments, MIND Technology has reported a return to profitability for the first time in a decade. The fiscal 2024 fourth quarter saw a surge in the company's Marine Technology product revenues by 51% to $13.4 million, contributing to the highest annual revenue ever recorded by MIND's Seamap business at $36.5 million.
The company's backlog for fiscal 2025 is robust, standing at over $38 million, indicating continued order momentum and a promising outlook for future financial performance.
MIND Technology also announced the sale of Klein, using the proceeds to eliminate high-cost debt, thus becoming debt-free. However, no dividends will be declared as the company plans to use liquidity and capital to fund growth and backlog execution. A meeting to discuss the conversion of preferred stock to common stock has been postponed. Despite anticipated fluctuations in quarterly revenue, MIND expects to sustain higher-level revenue in fiscal 2025 and beyond.
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