Steel Partners Holdings L.P. (Parent) and Equiniti Trust Company, LLC have entered into a Contingent Value Rights Agreement dated January 2, 2025. The agreement is related to the Reith Litigation and the Proposed Settlement involving Steel Connect, Inc. The terms of the agreement outline the distribution of a $6,000,000 cash payment to certain holders of the Company’s common stock, with the balance of the payment to be distributed to certain stockholders. The agreement also addresses the creation and issuance of contingent value rights (CVRs) as consideration in a short-form merger, with an affiliate of Parent merging with and into the Company.
As part of the agreement, certain rights to any Reith Net Litigation Proceeds, if and when payable, are provided, and the terms of the Stockholders' Agreement are also referenced in the agreement. Additionally, the agreement outlines the waiver of certain rights by stockholders and company officers in relation to the Reith Net Litigation Proceeds.
The agreement includes various definitions, such as CVRs, Holder, Reith Litigation, Reith Net Litigation Proceeds, and others, to provide clarity on the terms and their meanings within the context of the agreement.
It is important to note that the agreement involves complex legal and financial terms, and the specifics of the agreement may have various implications for the involved parties. Following these announcements, the company's shares moved -1.5%, and are now trading at a price of $42.16. For the full picture, make sure to review Steel's 8-K report.
