In a recent transaction, Jeff Toghraie, Chairman and CEO of Axil Brands, Inc. (OTC:AXIL), and his firm Intrepid Global Advisors, Inc., have made significant purchases of the company’s Series A Preferred Stock. The transactions, which took place on April 22, 2024, involved the acquisition of 11,250,000 shares of preferred stock, which is equivalent to 562,500 shares of common stock on an as-converted basis.
The preferred stock was acquired in two separate purchases, with the first being 3,750,000 shares of preferred stock, equivalent to 187,500 shares of common stock, for a cash consideration of $22,500. The second purchase involved 7,500,000 shares of preferred stock, equivalent to 375,000 shares of common stock, for a cash consideration of $45,000. These transactions were made pursuant to repurchase agreements with the previous holders of the preferred stock.
Following these transactions, Intrepid Global Advisors, Inc., which Jeff Toghraie manages, now owns a combined total of 15,456,750 shares of preferred stock, which reflects a significant interest in Axil Brands, Inc.
The preferred stock acquired by Intrepid Global Advisors, Inc. has a conversion feature that allows it to be converted into common stock on a twenty-for-one basis, at the option of the holder, after June 16, 2022. However, the conversion is subject to a cap that prevents the holder from owning more than 5% of Axil Brands’ common stock.
These transactions showcase the confidence that the company’s leadership has in its future prospects. Investors often view such insider purchases as a positive signal about the company's potential growth and financial health.
InvestingPro Insights
As Axil Brands, Inc. (OTC:AXIL) experiences notable insider transactions, the recent moves by Jeff Toghraie and Intrepid Global Advisors, Inc. are complemented by key financial metrics and insights that provide a broader context for investors. According to InvestingPro data, Axil Brands holds a market capitalization of $69.43 million, reflecting its size within the market. The company's gross profit margin stands at a robust 74.22% for the last twelve months as of Q3 2024, indicating a strong ability to control costs and generate profit from its revenues.
An impressive facet of Axil Brands is its revenue growth, which has surged by 62.61% over the last twelve months as of Q3 2024. This rapid expansion of the top line could be an indicator of the company's increasing market share and successful implementation of its business strategy. Furthermore, Axil Brands has shown resilience and potential for further growth, with a notable six-month price total return of 117.9% as of the date provided, showcasing a significant appreciation in its stock value over a relatively short period.
InvestingPro Tips highlight that Axil Brands has been trading at a low P/E ratio relative to near-term earnings growth, which may suggest that the stock is undervalued considering its earnings trajectory. Additionally, the company's ability to hold more cash than debt on its balance sheet is a reassuring sign of financial stability for investors. For those interested in further analysis, InvestingPro offers 12 additional tips on Axil Brands, which can be accessed by visiting InvestingPro’s dedicated page for AXIL. To enhance your investment research experience, use the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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