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Your weekly dose of actionable deal flow intelligence by DailyDAC.
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By DailyDAC™ • Issue #46 • May 18, 2022
A curation of actionable deal flow intelligence using some very proprietary sources, some public (but dispersed) data and a lot of spit & vinegar.
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Buy, Sell, or Hold Recommendation Issued |
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- Mace Security International, Inc. (OTCMKTS: MACE). MACE, located in Cleveland, Ohio, is a manufacturer and provider of personal safety and security products to consumer and law enforcement markets worldwide. Mace® Brand is the original manufacturer and market leader in the defense spray segment and has over 40 years’ experience developing aerosol defense spray dispensing technologies for both the consumer and tactical markets around the world. The Company also markets products through the well-respected Vigilant®, Tornado®, and Takedown® brands. Mace® directly distributes and supports its branded products through strategically targeted customer channels that include selected retailers, wholesale distributors, independent dealers, e-commerce channels, and its website, www.mace.com. DailyDAC initiated coverage of MACE on April 16, 2022 as ID #33158. The stock price on that date was $0.27. MACE had previously announced on April 8, 2022, that it will begin to explore strategic alternatives. Prior to then, between March 15 and March 31, MACE stock experienced a 90% increase in short interest. As of May 13, MACE closed around $0.25 and short interest stood at only .01%. Since April 16, MACE has traded between $0.25 and $0.30. It has traded as high as $0.66 during the past 52 weeks. As of March 31, 2022, MACE (according to its unaudited financial statements) had $2,390,000 of total liabilities, of which $2,285,000 were current liabilities. With only $24,000 (that is not a typo) in cash, the situation could be seen as precarious, though, with current assets ($1.528 million of A/R, $5.024 million of inventory, and $531,000 of other), total current assets totaled $7,107,000. MACE has an operating loss of $579,000 in the first quarter of 2022. Coupled with its cash position, this presents a cash crisis. Moreover, none of the directors or officers appear to have any prior experience in MACE’s industry. On the other hand, we are impressed with the company’s new CEO and its CFO, and its new products and sale channels are positives. And we live in an increasingly violent world, one in which more people are transitioning from a fully remote work or university experience to a hybrid situation, creating an environment of more people exposing themselves to potential threats at a time when our cities’ streets and subways remain relatively empty. DailyDAC issued a BUY recommendation on May 13, 2022. Deal ID: 33470
- Idaho Champion Gold Mines Canada, Inc. (CSE: ITKO). DailyDAC initiated coverage of ITKO on April 17, 2022 as ID #33165. The stock price on that date was CAD $0.075. ITKO’s Idaho properties include two gold mines and four cobalt mines, the latter in Lemhi County in the Idaho Cobalt Belt. ITKO touts cobalt mining as the “cornerstone of the clean energy revolution,” as it is a critical component of batteries in electric vehicles. Benchmark Mineral Intelligence forecasts significant cobalt shortages starting in 2030, and cobalt prices are currently at a four-year high. Note that ITKO is not the only cobalt miner in Idaho — another is Jervois Global (JRV-ASX). The bad news is that ITKO’s stock price (CAD $0.05 on May 9, 2022) has suffered prolonged inertia since 2012 – a nearly flatline chart, tipping toward zilch (The all-time high was $6 in September 2011). ITKO’s 2021 net loss of CAD $4,732,000 is about 40 times its total assets as of December 31, 2021. Another red flag for investors: ITK has CAD $3,000,000 in outstanding warrants — it uses options and warrants to compensate employees and officers — which may result in diluted shares for investors. One positive signal is that on April 20, 2022, ITKO signed a memorandum of understanding with an unnamed Asian battery company to “advance the company’s four cobalt projects.” If we knew more about the unnamed Asian battery company, and what sort of joint venture, sale, or project they have in mind, we might be more optimistic. We will keep an eye on this relationship, but DailyDAC issued a SELL recommendation on May 13, 2022, based on the dilutive effect of outstanding warrants. Deal ID: 33471
- Conduent, Inc. (NASDAQ: CNDT). DailyDAC initiated coverage of CNDT on April 16, 2022 as ID #33156. The stock price on that date was $5.60. It closed on April 12, 2022 at $4.57, above its 52-week low of $4.12 and significantly lower than its 52-week high of $8.50. Short interest is 2.39%. CNDT announced on April 7, 2022 that it will pursue strategic alternatives for its transportation business. CNDT’s transportation business serves public sector transportation agencies. CNDT is a very large diversified business process outsourcing company. It was spun off from Xerox in 2017 in order to unlock its value, but has had lackluster performance since. CNDT has a lot of debt but very little of it matures until 2026, with most maturing in 2028 and 2029. Moreover, while the total number is large, the debt load appears well within CNDT’s ability to service. CNDT also has a lot of cash and other short-term assets. The strategic alternatives it is considering for its transportation business appear focused on a sale or spinoff. Its May 2022 investor presentation made a strong case that CNDT is significantly undervalued. DailyDAC issued a BUY recommendation on May 13, 2022. Deal ID: 33472
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Assignment for Benefit of Creditors - Commenced |
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- Alltrue. Subscription box company. Assignment for Benefit of Creditors. On April 12, 2022, Gramr, Inc, d/b/a “Alltrue”, made a general assignment for the benefit of creditors under California law. Claims must be submitted prior to October 10, 2022. More info: Assignee Alltrue (ABC), LLC. Deal ID: 33534
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- Henry’s Auto Repair. Auto repair. Bulk Sale. The name and business address of the Seller is Henry’s Auto Repair Service, Inc., 8217 Washington Ave, #C, Whittier, California 90602. The name and business address of the Buyer is Sergio Yanes, 16496 Stevens Avenue, Lake Elsinore, California 92530. The assets to be sold are generally described as trade name, leasehold interest, leasehold improvements, goodwill, inventory of stock, covenant not to compete, furniture, fixtures and equipment. The anticipated date of the bulk sale is June 1, 2022. More info: Debbie Kneeshaw Howe of Escrow Officer at Heritage Escrow Company, Escrow No. 107-041554, 2550 Fifth Avenue, Suite 800, San Diego, California 92103. Deal ID: 33474
- Casa Camino Fifi. Restaurant. Bulk Sale. The name and business address of the Seller is Casa Camino Fifi, Inc., 3481 E. 61 Street, Long Beach, California 90805. The name and business address of the Buyer is Vallarta Restaurant, Inc., 5413 Everett Avenue, Maywood, California 90270. The assets to be sold are generally described as fixtures, equipment, stock in trade. The anticipated date of the bulk sale is May 31, 2022. More info: Mosaic Escrow located at 451 W. Bonita Avenue, San Dimas, California 91773. Deal ID: 33475
- River Rock Taproom. Bar. Bulk Sale. The name and business address of the Seller is River Rock Taproom, 963 La Mesa Terrace, Sunnyvale, California 94086. The name and business address of the Buyer is CPH Sunnyvale LLC, 155 S. Murphy Avenue, Sunnyvale, California 94086. The assets to be sold are generally described as fixtures, equipment, inventory and all business assets. The anticipated date of the bulk sale is June 1, 2022. More info: Bay Area Escrow Services located at 2817 Crow Canyon Road, STE 102, San Ramon, California 94583. Deal ID: 33476
- Red Bluff Motorsports. Recreational vehicle rental agency. Bulk Sale. The name and business address of the Seller is Carrel Motorsports, Inc., 22660 Antelope Blvd., Red Bluff, California 96080. The name and business address of the Buyer is Corning Powersports, Inc., 22660 Antelope Blvd. The assets to be sold are generally described as all stock in trade, FF&E, and other property. The anticipated date of the bulk sale is May 28, 2022. More info: Old Republic Title Company located at 1000 Burnett Avenue, Suite 400, Concord, California 94520. Deal ID: 33477
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Chapter 7 Filings Involving Companies
With Significant Assets |
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- Enhanced Homes Property Management LLC Property management company. Chapter 7 Bankruptcy Filing Involving Companies With Significant Assets. Case number 3:22-bk-00493 (case filed May 10, 2022 in the Southern District of Iowa, Judge Anita L Shodeen). Debtor’s address is 3532 Jersey Ridge Rd, Davenport, IA 52807-2223. Debtor has a well-designed and functional website that advertises, “Offering premier properties throughout Bettendorf, Moline, East Moline, Rock Island, Eldrige, Laclaire, Davenport, Milan, and the surrounding areas.” More info: H. J. Dane of KSTT Place, Debtor’s counsel @ (563) 326-0006 or hjdane@hjdane.com. Deal ID: 33458
- Sutter Marine, Inc. Boating and marine supply store. Chapter 7 Bankruptcy Filing Involving Companies With Significant Assets. Case number 2:22-bk-21181 (case filed May 9, 2022 in the Eastern District of California). Debtor’s address is PO Box 592, Yuba City, CA 95992-0592. It is a boating and marine supply store that has been in business since 1972 and has 36 Google reviews resulting in 4.3 stars. More info: Seth L. Hanson, Debtor’s counsel @ service@hansonattorney.com. Deal ID: 33461
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Chapter 11 Bankruptcy - 363 Sales |
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- DCM-P3, LLC. Community property company. Chapter 11 Bankruptcy Sale. In re DCM-P3, LLC, case number 8:21-bk-12507-TA. Filed in the Central District of California, Judge Theodor Albert. Debtor filed a motion to sell property 34 Black Hawk, Irvine, CA 92603 for $5,700,000. Subsequent overbids to be made in $5,000 increments. The hearing motion to grant the sale is on June 1, 2022. Any party wishing to participate in the overbid process must notify the debtor in writing via email directed to counsel for the Debtor Susan K. Seflin and Jessica L. Bagdanov at sseflin@bg.law and jbagdanov@bg.law, respectively, of his/her/its intention to do so no later than close-of-business three (3) calendar days before the hearing on the Motion and must provide evidence of his/her/its financial ability to close. More info: Debtor’s counsel Steven T Gubner of Bg Law LLP @ (818) 827-9000 or sgubner@bg.law. Deal ID: 33464
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Chapter 11 - Pleadings (other than a 363 Motion) or Other Facts Suggesting Likely Asset Sales |
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- Cypress Environmental Partners, L.P. (NYSE: CELP). Environmental water/energy services company. Chapter 11 Pleadings (other than a 363 Motion) or Other Facts Suggesting Likely Asset Sale. Case number: 9:22-bk-90039 (case filed on May 11, 2022 in the Southern District of Texas, Judge Marvin Isgur). The debtor’s address is 5727 South Lewis Avenue, Suite 300, Tulsa, OK 74105, Tulsa, OK. The NYSE announced on May 9, 2022 that it will be delisting the company’s common stock immediately. The NYSE regulation department came to this decision after determining that the company was no longer suitable for listing. On May 8, 2022, CELP filed a petition for chapter 11 bankruptcy in the Southern District of Texas and has anticipated that a great deal of restructuring will need to occur. More info: James Tillman Grogan, III of Paul Hastings LLP @ (713) 860-7300 or jamesgrogan@paulhastings.com. Deal ID: 33462
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Exploring Strategic Alternatives / Out-of-Court Restructuring Action / Cash Constraints |
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- Rackspace Technology (NASDAQ: RXT). Cloud computing company. Exploring Strategic Alternatives. RXT announced on May 12, 2022 that it is still “evaluating strategic alternatives and options” after conducting an in-depth strategic review and concluding that the sum of RXT’s assets could be greater than the value of the entire company. This means RXT may be looking to sell part of its business. CEO Kevin Jones has said that all options are on the table and that there is current “inbound” interest being considered. RXT closed at $9.54 on May 13, 2022. As of that date, RXT’s 52-week high was $21.50 with a 52-week low of $7.28. Deal ID: 33488
- Metacrine (NASDAQ: MTCR). Biotechnology company. Exploring Strategic Alternatives. On May 12, 2022, MTCR announced, alongside its Q1 results, that it has engaged with a financial advisor and initiated a review of strategic alternatives to maximize shareholder value. Possible alternatives could include, but are not limited to, a merger, sale, business combination, strategic partnership, or the licensing or sale of its programs. In February, 2022, MTCR cut half of its staff and shifted its focus specifically to a phase 2 trial in inflammatory bowel disease after obtaining FDA approval. MTCR closed at $0.45 on May 13, 2022. As of that date, MTCR’s 52-week high was $4.84 with a 52-week low of $0.35. Deal ID: 33489
- Hollywood Foreign Press Association (Private). Media organization. Exploring Strategic Alternatives. The Hollywood Foreign Press Association (HFPA), the organization known for Hollywood reporting and the Golden Globe Awards, is looking for potential buyers. The HFPA announced on May 13, 2022, that it engaged a financial advisor, Houlihan Lokey, and has officially formed a special committee to “determine potential outside strategic interest in its organization and assets.” Deal ID: 33482
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- TE Connectivity. Consumer electronics company. Facility Closings. TE Connectivity is permanently closing its plant located in Andover, Minnesota. Approximately 120 employees will be laid off on December 1, 2022. Deal ID: 33460
- Ben Elias Industries, Corp. and Kenco Retail Inc. Apparel distributor. Facility Closings. Ben Elias Industries, Corp. and Kenco Retail Inc. is permanently ceasing operations at its 223 West Merrick Road facility in Valley Stream, New York 11580. Approximately 79 employees will be laid off on August 4, 2022. Deal ID: 33466
- Santa Fe Natural Tobacco Company, Inc. Tobacco company. Facility Closings. Santa Fe Natural Tobacco Company, Inc. is permanently closing its 3220 Knotts Grove Road facility located in Oxford, North Carolina 27565. Approximately 114 employees will be laid off on August 2, 2022. Deal ID: 33467
- Ametek-ESP. Power solutions company. Facility Closings. Ametek-ESP is permanently closing its 8001 Knightdale Blvd facility located in North Carolina 27545. Approximately 60 employees will be laid off on July 5, 2022. Deal ID: 33468
- Prescient Co Inc. Manufacturer. Facility Closings. Prescient Co Inc. is permanently closing its 2125 Senator Ralph Scott Pkwy facility located in Mebane, North Carolina 27302. Approximately 83 employees will be laid off on July 9, 2022. Deal ID: 33469
- Borden Dairy. Dairy company. Facility Closings. Borden Dairy is permanently closing its facility located in North Charleston, South Carolina. Approximately 177 employees will be laid off on May 31, 2022. Deal ID: 33494
- BCS Automotive Interface Solutions U.S., LLC. Auto parts manufacturer. Facility Closings. BCS Automotive Interface Solutions U.S., LLC is permanently closing its Trempealeau facility located in Galesville, Wisconsin. Approximately 57 employees will be laid off on July 7, 2022. Deal ID: 33495
- Wiseway Transportation. Transportation services. Facility Closings. Wiseway Transportation is permanently closing its Brown facility located in Hudson, Wisconsin. Approximately 127 employees will be laid off on July 15, 2022. Deal ID: 33497
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- Draken International, LLC. Aerospace and defense company. Mass Layoffs. Draken International, LLC is eliminating 100 positions at its 3300 Flighline Drive facility in Lakeland, Florida 33811. Layoffs will begin on May 20, 2022. Deal ID: 33454
- ABM. Accommodation and Food services. Mass Layoffs. ABM is eliminating 166 positions at its 2101 Eustace Avenue facility in Deltona, Florida 32725. Layoffs will begin on June 30, 2022. Deal ID: 33455
- NDSM Chemung, LLC. Manufacturer. Mass Layoffs. NDSM Chemung, LLC is eliminating 246 positions at its 6303 Maxon Road facility in Harvard, Illinois 60033. Layoffs will begin on July 9, 2022. Deal ID: 33456
- OPW Fuel Management Systems, Inc. Fuel management solutions. Mass Layoffs. OPW Fuel Management Systems, Inc. is eliminating 34 positions at its 6900 Santa Fe Drive facility in Hodgkins, Illinois 60525. Layoffs will begin on August 31, 2022. Deal ID: 33457
- Alorica Inc. Customer experience solutions. Mass Layoffs. Alorica Inc. is eliminating 12 positions at its facility in Greenville, South Carolina. Layoffs will begin on June 6, 2022. Deal ID: 33478
- Michaels Stores Procurement Company, Inc. Manufacturer. Mass Layoffs. Michaels Stores Procurement Company, Inc. is eliminating 202 positions at its 8000 Bent Branch Drive facility in Irving, Texas. Layoffs will begin on June 6, 2022. Deal ID: 33479
- NDSM De Pere, LLC. Food company. Mass Layoffs. NDSM De Pere, LLC is eliminating 135 positions at its 301 Bedford Street facility in Madison, Wisconsin 53703. Layoffs will begin on July 9, 2022. Deal ID: 33480
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Rating Agency Alerts/Going Concern Opinions/Stock Market Delisting/Other Signs of Potential Distress OR Upside Alpha Opportunity™ |
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- Volta Inc. (NYSE: VLTA). Electric vehicle infrastructure company. Going Concern Opinion. VLTA announced on March 13, 2022, that it has substantial doubt regarding its ability to continue as a going concern over the next 12 months. VLTA will need to secure additional funding or will be forced to “significantly curtail its operations, modify strategic plans, and/or dispose of certain operations or assets.” VLTA recently beat earnings expectations and is working to continue expanding EV charging stalls with its partnerships including Tanger Outlets, Six Flags, T-Mobile, and PepsiCo. VLTA closed at $2.12 on May 13, 2022. As of that date, VLTA’s 52-week high was $14.34 with a 52-week low of $1.65. Deal ID: 33483
- AgeX Therapeutics Inc. (NYSEAMERICAN: AGE). Biotechnology company. Going Concern Opinion. AGE announced on March 13, 2022, that it has substantial doubt regarding its ability to continue as a going concern. AGE does not believe its current cash flow is sufficient to satisfy its operating requirements for the twelve month period following the filing of AGE’s Quarterly Report (Form 10-Q) on March 31, 2022. AGE closed at $0.75 on May 13, 2022. As of that date, AGE’s 52-week high was $1.77 with a 52-week low of $0.52. Deal ID: 33484
- Canoo Inc. (NASDAQ: GOEV). Electric vehicle manufacturer. Going Concern Opinion. On May 10, 2022, GOEV shares plunged during after-hours trading as the company announced that there is substantial doubt as to the ability of the company to continue as a going concern. Despite just raising $300 million in funding from an existing shareholder in a shelf-offering, GOEV is running low on cash as its losses are increasing. GOEV had around 120 million dollars at the end of March, spent 28 million in expenses in Q1, expects to spend between $95 million and $115 million in Q2, and has generated $0 in revenue. GOEV closed at $3.28 on May 13, 2022. As of that date, GOEV’s 52-week high was $13.35 with a 52-week low of $2.55. Deal ID: 33490
- Blackbaud, Inc. (NASDAQ: BLKB). Cloud computing provider. Other Signs of Potential Distress. On May 9, 2022, John W. Olson, Senior Vice President and General Counsel at Blackbaud, Inc., sold off 7,000 shares of BLKB. BLKB is down nearly 40% year to date and, while BLKB recently acquired EverFi, a SaaS provider, it has very little organic revenue growth and is now highly leveraged at 3.6x as a result of the recent acquisition. BLKB closed at $54.33 on May 13, 2022. As of that date, BLKB’s 52-week high was $86.96 with a 52-week low of $48.52. Deal ID: 33491
- Predictive Oncology Inc. (NASDAQ: POAI). Artificial intelligence medical company. Stock Market Delisting. On May 13, 2022, POAI received notice of delisting. This notice is a result of POAI’s failure to maintain the minimum bid price of $1.00. POAI now has 180 days, or until November 9, 2022, to regain compliance and remain listed on the exchange. POAI closed at $0.70 on May 13, 2022. As of that date, POAI’s 52-week high was $1.64 with a 52-week low of $0.60. Deal ID: 33492
- Alkaline Water Company Inc. (NASDAQ: WTER). Beverage company. Stock Market Delisting. On May 10, 2022, WTER received notice of delisting. This notice is a result of WTER’s failure to maintain the minimum bid price of $1.00. WTER now has 180 days, or until November 7, 2022, to regain compliance and remain listed on the exchange. WTER closed at $0.42 on May 13, 2022. As of that date, WTER’s 52-week high was $2.35 with a 52-week low of $0.40. Deal ID: 33493
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Receiverships - Commenced |
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- Lighthouse Property Insurance Corporation. Insurance company. Receivership Commenced. Case Number: 777, 274. On April 5, 2022, the 19th Judicial District Court of Louisiana placed both Lighthouse Property Insurance Corporation and Lighthouse Excalibur Insurance Company into Receivership. Billy J. Bostick, partner at Bostick/Crawford Consulting Group, has been appointed as the receiver and Frank W. McNabb has been appointed deputy receiver. More info: Bostick/Crawford Consulting @ (972) 898-8950. Deal ID: 33485
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(including Article 9 sales, commercial real estate foreclosure sales, residential real estate foreclosure sales, sheriff’s sales, tax sales, warehouse lien sales) |
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- Cooperative apartment. Article 9/Secured Party Sale. Public auction is at 1:00 pm EST on June 2, 2022, located at the Queens County Courthouse, 88-11 Sutphin Blvd, Jamaica, NY 11435. The property is 436 shares of capital stock of Dunolly Owners Corp. and all right, title and interest in the Proprietary Lease to: 34-41 78th Street, Apt. 4J, Jackson Heights, NY 11372, estimated to be worth $352,000.00. More info: Frenkel, Lambert of Weiss, Weisman & Gordon, LLP, Attorneys for National Cooperative Bank, N.A. @ (716) 932-1552. Deal ID: 33536
- 107 Ocean Ave. West Haven, CT. Residential Foreclosure Sale. Public auction is at 12:00 pm EST on May 21, 2022 at the property. The property is a two-bedroom, 2,200 SF home, on a 4,792 SF lot, estimated by Realtor.com to be worth $649,900. Loancare, LLC is the mortgagee. More info: Claudette J. Narcisco of Antollino & Angelo LLC @ (203) 208-4401. Deal ID: 33537
- 8 Hawthorne Street, Beverly, MA 01915. Residential Foreclosure Sale. Public Auction is at 12:00 pm EST on June 14, 2022, at the mortgaged premises. The property is a three-bedroom, 1,452 SF home, estimated by Zillow.com to be worth $564,300. Financial Freedom Senior Funding Corporation is the mortgagee. More info: Korde & Associates, P.C. located at 900 Chelmsford Street, Suite 3102, Lowell, MA @ (978) 256-1500. Deal ID: 33538
- 134 1/2 Kinsley Street, Nashua, Hillsborough County, NH. Residential Foreclosure Sale. Public auction is 11:00 am EST on July 5, 2022 at the property. The property is a seven-bedroom, 3,634 SF home, estimated by Zillow.com to be worth $507,900. Schaefer Mortgage Corporation is the mortgagee. More info: CT Corporation System located at 9 Capitol Street, Concord, NH 03301 @ (603) 226-8600. Deal ID: 33539
- Jasper Pellets, LLC. Animal food manufacturing company. Article 9/Secured Party Sale of Assets. The sale includes 100% Equity Membership interest the company. A public auction will be held on May 31, 2022, at 10:00 am EST. More info here or John D. Elrod of Greenberg Traurig, LLP, Secured Party’s counsel @ elrodj@gtlaw.com or (678) 553-2100. Deal ID: 33542
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Significant Litigation Development Creating Potential Existential Threat |
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- Jaypur Logistics, LLC. Cargo and freight company. Significant Litigation Development. On May 7, 2022, Jaypur Logistics, a Houston based trucking company was declared an “imminent hazard” to public safety by The Federal Motor Carrier Safety Administration (FMCSA). The FMCSA has officially ordered the carrier to cease operations immediately. These developments come as Jaypur has had a documented history of violations and was deemed “egregiously noncompliant with multiple federal safety regulations” by the FMCSA. Jaypur is potentially facing hundreds of thousands of dollars in civil penalties. Deal ID: 33486
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The Fine Print: Your use of the information in DailyDAC, LLC’s Opportunistic Deal Database™ and Distressed Deal Database™, and your right to be a subscriber is strictly conditioned on your acceptance of our terms and conditions.
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