Clinton Group Increases Overland Storage Stake Ahead of Merger
Clinton Group ups the ante and helping out Overland Storage where they can.
Underdisclosed.com favorite Clinton Group, Inc. was a major shareholder in Overland Storage, a maker of data storage products.
As of September 2013, Clinton held about 2.9 million shares and another 2.0 million shares underlying warrants and convertible notes. This amount to about a 14.9% interest, on a diluted basis.*
On November 14, Clinton group filed its Form 4 for Overland, disclosing that on November 8, it had converted its notes, to the tune of 769,230 shares of OVRL, based on a $1.0 million principal amount and a $1.30 conversion price.** We do note that OVRL has reached the $1.00 point once in November, on November 1, when it hit $1.10/share and closed at $0.98/share.
Takeaway? We expect that Overland asked for this cash infusion from a supportive shareholder since Overland is also the unlucky recipient of a notice from Nasdaq saying it could face delisting if it doesn’t get its share price over $1.00 for 10 consecutive business days. In addition, one of Overland’s directors, Joseph A. De Perio, is a portfolio manager for Clinton Group.
In addition, also on November 1, Overland agreed to acquire Tandberg Data Holdings, payable in OVRL shares to the tune of 54% of Overland.
The $1.30/share price seems to be the marker since the Form 8-K did not include a specified transaction value.*Based on SEC rules for calculating beneficial ownership, which is not the same a “fully diluted basis.”
**Note to Clinton Group compliance team: Your November 2013 Form 4’s were very late. I’m sure we’ll see note of this in next year’s Overland proxy statement.