Boston, MA 09/26/2013 (wallstreetpr) – In the last week of August, a joint communicate came out from iGo, Inc. (NASDAQ:IGOI) and Steel Excel Inc.(OTC:SXCI) laying out to the public the overall picture on successful completion of Steel Excel tender offer to procure outstanding shares from the market.
As of August 27, a total of 2.07 million shares of iGo were validly tendered and was in deposit with Computer share trust company which is acting as the facilitator of this deal. The total shares in receipt account for 69.3% of the total outstanding shares of the company. Steel Excel has committed to pay $3.95 for each share of accepted stock on a prorate basis to account for 44% of iGo total outstanding shares as of July 11 in accordance to its tender agreement.
As a direct result of this transaction, the company had to terminate the services of its President and CEO Michael D. Heil and a additional directors Frederic Welts in order to accommodate two new directors nominated by Steel Excel.
Post this announcement the company shares have lost close to 10% of its value. The share is trading at $3 recording a 5.6% dip in its value compared to its previous day close of $3.18. Its market capitalization is $8.73 million. Due to the change in management coupled with a disruption in supply of batteries from one of its key suppliers, the company has disclosed that its second quarter operation results would most likely record a dip in sales and gross margins leading to a disruption in cash flow. For the most recent quarter the company had recorded a 35% dip in its sales for the quarter.
iGO is into the design and manufacturing of accessories to digital, electronic and telecommunication devices like cell phones, tablets, hand held music systems, gaming systems and other such entertainment oriented devices.
