Pennexx Foods (OTC:PNNX) Stock In Focus After Latest News
There are a large number of companies that came into the news cycle on Tuesday, and one of those was Pennexx Foods (OTC:PNNX). This morning, more and more investors are going to look into those companies that were in the news cycle yesterday, and it is likely that Pennexx may come into focus. Yesterday, the company announced that it had gotten written consent and agreements from its major shareholders, by way of which it went on to create two new classes of stock, Series A and Series B.
The Series A category of stocks cannot be converted but would be deployed as voting stocks for Pennexx. The Series B stocks are meant to be offered in the form of performance-related incentives to some of the important employees of the company. The company went on to note that the details of the transactions would be provided in the filings for the fiscal third quarter.
Thanks to the agreements, it became possible for the board of directors of the company to keep the number of outstanding shares at around 60 million. The company achieved that through the exchange of common stock held by a major shareholder for unconvertible Series A stock.
The important thing to keep in mind regarding the move is that there was no more dilution of the Pennexx stock. The company currently holds as many as 150 million shares, which provides it with a considerable ability to generate fresh capital if it wants. The Series B preferred shares could be offered by Pennexx to members of management who come in and make significant hires. That would, in turn, help it hire a higher category of executives as part of its management.
The company is currently best known for its Your Social Offers solution, and on September 28, it made a major announcement about it. Pennexx Foods revealed that its strategy with regards to the product also involved strategic alliances with marketing firms as well as sales organizations. In the news release, the company noted that the approach would help it leverage its state-of-the art dashboard technology and boost merchant sign-ups. All that would be possible without the need to maintain a standing internal sales force.
The company asserted that through these key collaborations, it would be possible for the company to speed up its growth considerably and harness the expertise that is provided by external sales teams. Additionally, Pennexx also revealed that it would also work on maintaining its existing relationships for the purpose of promoting its products and thereby do away with the necessity to grow those channels from the beginning. The Chief Executive Officer of the company, Vincent Risolvato, spoke about the development as well. He noted that it was a major new achievement for the company’s Your Social Offers product. He went on to add that the fact that the company had licensed as many as 106 zip codes was expected to be a major aspect of its growth prospects.
