Troika Media Group (NASDAQ:TRKA) stock is up more than 140% over the past month following several news releases from the company. First, the company announced that it has requested to withdraw a registration statement filed with the U.S. Securities and Exchange Commission (SEC) last May. The registration statement sought to resell up to 272.76 million shares of common stock from selling stockholders.
This withdrawal is welcome news for shareholders, as the resale would dilute existing shareholders. Up to 266.76 million shares would have been issuable to institutional investors upon the exercise of 33.33 million warrants. Furthermore, up to 6 million shares would have been issuable to Troika’s placement agent and/or its assignees upon the exercise of 1 million warrants. The company stated in the filing that it “may” receive gross proceeds of about $68 million from the exercise of investor and placement agent warrants.
Troika noted that it would back out of the resale because it is “not currently pursuing a public offering of securities.” The withdrawal is also “consistent with the public interest and the protection of investors.” At the same time, the company also disclosed that no securities have been sold from the registration statement.
On top of that, Pulse 2.0 reports that Troika has hired Jefferies to explore strategic alternatives and improve its capital structure. The investment banking firm will take the lead to analyze senior secured debt and clean up the balance sheet.
5 Investors Betting Big on TRKA Stock
Tracking institutional ownership is important, as these large investors provide liquidity and support for stocks. During the fourth quarter, 25 13F filers disclosed a stake in TRKA stock, an increase of seven filers from the prior quarter. In total, insiders own 52.93% of all shares outstanding, while institutions own 14.51%. In terms of public float, institutions own 30.83% of the shares. With that in mind, let’s take a look at the largest shareholders of Troika:
- Peter Coates: 10.48 million shares. Coates’ stake is accurate as of Q2 2022.
- Kevin VanBeek: 8.38 million shares. VanBeek disclosed his entire stake on Jan. 18.
- Thomas Marianacci: 7.02 million shares. Marianacci’s stake is accurate as of Q1 2022.
- Altium Capital Management: 2.67 million shares. Altium acquired its entire stake during Q4 2022.
- Geoffrey Bond: 2.64 million shares. Bond’s stake is accurate as of Q2 2021.
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On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
