MANCHESTER, NH - Minim, Inc. (NASDAQ:MINM), a manufacturer of telephone and telegraph apparatus, has announced an amendment to its corporate structure, increasing its designated Series A Convertible Preferred Stock. The company filed an amended and restated certificate of designation on Monday, which raises the number of shares from 2,000,000 to 3,000,000.
This strategic move is aimed at bolstering Minim's equity to address and reduce certain accounts payable. The information, based on a press release statement, highlights the company's efforts to improve its financial position.
Minim, which is incorporated in Delaware and has its principal executive offices in Manchester, NH, has seen its common stock trading on The Nasdaq Capital Market currently suspended. The company, formerly known as Zoom (NASDAQ:ZM) Telephonics, Inc., underwent a name change in 2009.
The adjustment to the preferred stock is a notable change in Minim's financial strategy, as it seeks to manage its liabilities through equity rather than accumulating more debt. This decision reflects a proactive approach by the company's management to strengthen its balance sheet.
As the company navigates through its current financial landscape, this development is an essential aspect of its broader fiscal management plan. It remains to be seen how this structural change will impact Minim's financial health and operations in the future.
In other recent news, Minim, Inc. has been granted an extension on a temporary restraining order (TRO) against The Nasdaq Stock Market, to prevent its common stock from being delisted. This development follows Minim's filing to halt Nasdaq from delisting its stock.
In the midst of these legal proceedings, Minim's co-Chief Executive Officer and board member, Jeremy Hitchcock, has resigned. The reasons for his departure and details about his successor remain undisclosed.
Simultaneously, the CEO entered into a securities purchase agreement with Yihucha Technology Co., Ltd, selling a significant portion of his stakes in the company. Minim is also exploring options such as a direct equity investment or a business combination to meet the minimum stockholders' equity requirement for continued inclusion on the exchange.
InvestingPro Insights
Minim's recent corporate restructuring aligns with its current financial challenges, as reflected in the latest InvestingPro data. The company's market capitalization stands at a modest $4.8 million, with revenue for the last twelve months as of Q2 2023 at $8.8 million. However, Minim is facing significant headwinds, with a negative gross profit of $2.42 million and an operating income margin of -106.58% for the same period.
Two relevant InvestingPro Tips shed light on Minim's situation. Firstly, the company "holds more cash than debt on its balance sheet," which could provide some financial flexibility as it implements its new equity strategy. Secondly, Minim "suffers from weak gross profit margins," which explains the need for the recent corporate restructuring to address accounts payable issues.
These insights are just a sample of the valuable information available on InvestingPro. The platform offers 11 additional tips for Minim, providing a comprehensive view of the company's financial health and market performance.
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