SCHEDULE 13G: Mink Brook Entities Report 5.26% Stake in Heritage Global Inc. Following Issuer Share Repurchases

Mink Brook Asset Management and affiliated entities have reported a 5.26% beneficial ownership stake in Heritage Global Inc., triggered by the issuer's share repurchase activity rather than new acquisitions by Mink Brook.

Summary

• Mink Brook Asset Management LLC, Mink Brook Partners LP, Mink Brook Opportunity Fund LP, Mink Brook Capital GP LLC, and William Mueller collectively reported beneficial ownership of 1,867,021 shares of Heritage Global Inc. common stock.
• This aggregate ownership represents 5.26% of Heritage Global Inc.'s outstanding common stock.
• The percentage is calculated based on 35,495,057 shares outstanding, as disclosed in Heritage Global Inc.'s annual 10-K dated March 13, 2025.
• The filing was triggered by Heritage Global Inc.'s share repurchase activity, not by new share purchases by the Mink Brook parties in the first quarter of 2025.
• William Mueller, as managing member of Mink Brook Capital GP LLC and Mink Brook Asset Management LLC, is deemed to have shared voting and dispositive power over the aggregate shares.

Sentiment

Score: 6

Explanation: The filing is a standard disclosure of beneficial ownership. The increase in percentage ownership for the reporting entities is a result of Heritage Global Inc.'s share repurchase program, which is generally viewed as a positive action by the company to return value to shareholders and reduce outstanding shares.

Positives

• The increase in the reporting entities' percentage ownership is a result of Heritage Global Inc.'s share repurchase program, which typically reduces the number of outstanding shares and can be viewed as a positive signal of management's confidence in the company's value and a method to return capital to shareholders.

Future Outlook

This document, a Schedule 13G filing, does not contain any forward-looking statements or guidance from Heritage Global Inc. or the reporting entities regarding future performance or strategic direction.

Management Comments

• The reporting persons certify that the securities were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer, and were not acquired or held in connection with or as a participant in any transaction having that purpose or effect, other than activities solely in connection with a nomination under Rule 14a-11.

Industry Context

This filing indicates an increase in the percentage of institutional ownership in Heritage Global Inc. due to the company's own share repurchase program. Share repurchases are a common capital allocation strategy across various industries, often employed by companies to return value to shareholders, reduce the number of outstanding shares, and potentially signal management's belief that the stock is undervalued.

Comparison to Industry Standards

• This is a standard Schedule 13G filing, which is a routine disclosure for beneficial ownership exceeding 5% by passive investors. The reported 5.26% stake is significant enough to require disclosure but does not indicate an activist position, which would typically necessitate a Schedule 13D filing.
• Share repurchase programs, which triggered this filing, are a widely accepted corporate finance practice. They are often compared to dividend payments as a means of returning capital to shareholders and can be a sign of financial health and confidence in future cash flows. Without specific financial performance data for Heritage Global Inc. or its industry peers, a detailed comparative assessment of the impact of this particular repurchase program is not possible from this document alone.

Stakeholder Impact

• Shareholders: The issuer's share repurchase activity, which led to the increased percentage ownership for the reporting entities, generally benefits existing shareholders by reducing the number of outstanding shares, potentially increasing earnings per share and stock price.

Key Dates

Keywords

Heritage Global Inc., Mink Brook Asset Management, Schedule 13G, Beneficial Ownership, Share Repurchase, Common Stock, Institutional Ownership, SEC Filing, Investment Management