QXO
Qxo, INC
NYSE
8-K: SilverSun Stockholders Approve $1 Billion Equity Investment from Jacobs Private Equity II
Sentiment:
Merger Announcement
15 March 2024 7:30 AM
SilverSun Technologies' stockholders overwhelmingly approved a $1 billion equity investment from Jacobs Private Equity II and minority co-investors.
Capital raise
The document details a $1 billion equity investment from JPE and minority co-investors.
It also mentions the possibility of raising additional equity or debt capital in the future to pursue acquisitions.
Summary
- SilverSun Technologies stockholders have approved a $1 billion equity investment from Jacobs Private Equity II (JPE) and minority co-investors.
- Approximately 99.5% of all votes cast, representing about 65.7% of outstanding shares as of February 12, 2024, were in favor of the investment.
- The investment is subject to customary closing conditions and is expected to be completed in 2024.
- The special meeting also approved several amendments to the company's certificate of incorporation, including a reverse stock split and an increase in authorized shares.
- A new omnibus incentive plan was also approved.
Sentiment
Score: 7
Explanation: The document is generally positive due to the large investment and stockholder approval, but there are significant risks and uncertainties highlighted, preventing a higher score.
Highlights
- SilverSun Technologies' stockholders approved a $1 billion equity investment from JPE and minority co-investors.
- The vote in favor of the equity investment was approximately 99.5% of votes cast, representing 65.7% of outstanding shares.
- The equity investment is expected to close in 2024, subject to customary closing conditions.
- The stockholders approved a reverse stock split as part of the amended certificate of incorporation.
- The number of authorized common shares was increased to 2,000,000,000 and preferred shares to 10,000,000.
- A new QXO, Inc. 2024 Omnibus Incentive Plan was approved.
Positives
- The overwhelming stockholder approval of the $1 billion equity investment indicates strong support for the transaction.
- The substantial investment from JPE and co-investors provides significant capital for SilverSun's future growth.
- The approval of the amended certificate of incorporation and incentive plan sets the stage for the company's strategic direction.
Negatives
- The document highlights risks associated with the company's low public float, which may lead to significant price volatility.
- There are risks associated with raising additional capital, which could lead to substantial dilution for existing shareholders.
- The company is highly dependent on the continued leadership of Brad Jacobs, and his loss could have a material adverse effect.
Risks
- The completion of the equity investment is subject to customary closing conditions, which may not be satisfied.
- The company faces risks related to its low public float, which could cause significant price volatility.
- There is a risk that the company may not be able to raise additional capital on acceptable terms.
- The company is dependent on the leadership of Brad Jacobs, and his departure could negatively impact the business.
- The company faces risks related to cybersecurity and technology.
- The building products distribution industry is cyclical and seasonal, which could impact the company's performance.
- There are risks associated with potential litigation related to the investment or future transactions.
Future Outlook
The equity investment is expected to be completed in 2024, subject to customary closing conditions. The company plans to pursue acquisitions in the building products distribution industry.
Management Comments
- The press release jointly issued by SilverSun and JPE announced the results of the special meeting.
- Brad Jacobs, who leads JPE, is expected to become chairman and chief executive officer of SilverSun.
Industry Context
The investment and planned acquisitions indicate a strategic move into the building products distribution industry, which is subject to cyclicality and seasonality. This is a significant shift for SilverSun, which has historically been a technology company.
Comparison to Industry Standards
- The $1 billion investment is substantial compared to typical investments in the technology sector, suggesting a major strategic shift for SilverSun.
- The move into the building products distribution industry is a departure from SilverSun's previous focus, making direct comparisons to industry peers difficult at this stage.
- The company's future performance will be benchmarked against established players in the building products distribution industry, such as Builders FirstSource and Beacon Roofing Supply.
Stakeholder Impact
- Shareholders have approved the equity investment, which is expected to provide significant capital for growth.
- Employees may be impacted by the strategic shift and potential acquisitions.
- Customers and suppliers may see changes as the company moves into the building products distribution industry.
- Creditors may be impacted by the company's increased debt and equity.
Next Steps
- The equity investment is expected to close in 2024, subject to customary closing conditions.
- SilverSun plans to separate its existing business into SilverSun Technologies Holdings, Inc. (the spin-off).
- The company will pursue acquisitions in the building products distribution industry.
Legal Proceedings
- The document mentions the risk of potential litigation related to the transactions contemplated by the Investment Agreement or related to any possible subsequent financing transactions or acquisitions or investments.
Key Dates
- February 12, 2024: Record date for the special meeting of stockholders.
- February 13, 2024: The company's Definitive Proxy Statement on Schedule 14A was filed with the Securities and Exchange Commission.
- March 14, 2024: Date of the special meeting of stockholders.
- March 15, 2024: Date of the press release announcing the results of the special meeting.
Keywords
equity investment, stockholder approval, Jacobs Private Equity, SilverSun Technologies, reverse stock split, capital raise, corporate governance, merger, acquisition
QXO
Qxo, INC
NYSE
Sector: TBD
Filings with Classifications
Worse than expected
8 May 2025 4:12 PM
Earnings Release
- The company's revenue decreased compared to the same period last year.
- The adjusted EBITDA was significantly lower than the same period last year.
Capital raise
29 April 2025 5:06 PM
Merger Announcement
- QXO closed its previously announced $830 million equity private placement in conjunction with the acquisition.
Capital raise
24 April 2025 1:12 AM
Debt Offering Announcement
- Queen MergerCo, Inc. priced its offering of $2.25 billion of 6.75% Senior Secured Notes due 2032.
- The size of the offering was increased from the previously announced offering size of $2.0 billion.
- The proceeds from the offering will be used to fund the acquisition of Beacon Roofing Supply, Inc.
Capital raise
21 April 2025 7:33 AM
Capital Raise Announcement
- QXO, through its subsidiary Queen MergerCo, Inc., intends to offer $2 billion in Senior Secured Notes due 2032.
- The notes will be offered privately to qualified institutional buyers and non-U.S. persons.
- The proceeds will be used to fund the acquisition of Beacon Roofing Supply, Inc. and related expenses, along with borrowings under new senior secured credit facilities, proceeds from QXO's previously announced equity offerings, and available balance sheet cash.
Capital raise
21 April 2025 7:16 AM
Capital Raise Announcement
- QXO is offering 37,735,850 shares of common stock at a price of $13.25 per share.
- The underwriters have an option to purchase up to an additional 5,660,377 shares.
- The company expects to receive net proceeds of approximately $490 million, or $564.2 million if the underwriters fully exercise their option.
- The proceeds will be used to partially finance the acquisition of Beacon Roofing Supply, Inc.
Capital raise
16 April 2025 5:14 PM
Capital Raise Announcement
- QXO intends to offer for sale to the public $500,000,000 of shares of its common stock.
- QXO intends to grant the underwriters of the offering an option to purchase up to an additional $75,000,000 of shares of Common Stock at the same price per share as the other shares of our Common Stock purchased by the underwriters in this offering.
- The net proceeds from the Offering to finance a portion of the consideration for the pending acquisition of Beacon Roofing Supply, Inc.
Capital raise
16 April 2025 4:59 PM
Merger Announcement
- QXO plans to finance the acquisition through a combination of debt and equity financing.
- The debt financing includes a new senior secured term facility and senior secured notes totaling \$4.55 billion.
- The equity financing includes a private placement of approximately 67.5 million shares of QXO's common stock at \$12.30 per share, expected to generate approximately \$830.6 million.
- QXO also intends to issue additional shares of common stock in a public offering for gross proceeds of \$600 million.
Better than expected
2 April 2025 4:43 PM
Proxy Statement
- The company delivered an increase of approximately 400% in stockholder value between the announcement of the Equity Investment in December 2023 and the formal grant of equity awards at the end of July 2024.
Capital raise
2 April 2025 4:43 PM
Proxy Statement
- The company issued to the Investors, in the aggregate, (i) 1,000,000 shares of Convertible Preferred Stock that, in aggregate, are convertible into 219,010,074 shares of our common stock at an initial conversion price of $4.566 per share, subject to customary anti-dilution adjustments; and (ii) the Warrants to purchase an additional 219,010,074 shares of our common stock at initial exercise prices of $4.566 per share with respect to 50% of the Warrants, $6.849 per share with respect to 25% of the Warrants, and $13.698 per share with respect to the remaining 25% of the Warrants, in each case subject to customary anti-dilution adjustments.
- On July 25, 2024, the company issued and sold an aggregate of 67,833,699 shares of common stock at a price of $9.14 per share in a private placement.
Capital raise
20 March 2025 8:52 AM
Merger Announcement
- QXO has secured financing commitments covering the full purchase price.
- QXO has entered into purchase agreements with certain institutional investors for an $830 million private placement financing, subject to the completion of the Beacon acquisition.
Capital raise
17 March 2025 5:25 PM
Capital Raising Announcement
- QXO, Inc. is raising $830 million through a private placement of approximately 67.5 million shares at $12.30 per share.
- The funds are earmarked for the acquisition of Beacon Roofing Supply, Inc.
- The closing of the private placement is contingent upon the concurrent consummation of QXO's all-cash tender offer to acquire all outstanding shares of Beacon Roofing Supply, Inc.
Capital raise
4 March 2025 8:19 AM
Annual Report
- The company issued and sold 1,000,000 shares of Convertible Perpetual Preferred Stock for $1.0 billion.
- The company issued warrants exercisable for 219,010,074 shares of common stock.
- The company issued 340,932,212 shares of common stock and pre-funded warrants to purchase 42,000,000 shares in a private placement for approximately $3.5 billion.
- The company issued an additional 67,833,699 shares of common stock in a private placement for approximately $620 million.
Worse than expected
4 March 2025 8:09 AM
Earnings Release
- Adjusted EBITDA decreased year-over-year, from a gain of $0.7 million to a loss of $(7.7) million.
- The company reported a loss of $(0.11) per basic and diluted shares attributable to common shareholders for the full year 2024.
Better than expected
27 January 2025 7:15 AM
Tender Offer Announcement
- The offer price of $124.25 per share represents a significant premium over Beacon's unaffected share price and historical trading multiples, indicating a better than expected outcome for shareholders.
Delay expected
27 January 2025 7:15 AM
Tender Offer Announcement
- QXO's attempts to engage with Beacon have been met with delays and cancellations, leading to a hostile tender offer.
- Beacon has imposed unreasonable preconditions for discussions, including a long-term standstill agreement.
Better than expected
27 January 2025 7:14 AM
Tender Offer Statement
- The offer price represents a significant premium over Beacon's unaffected share price and historical trading multiples.
Delay expected
27 January 2025 7:14 AM
Tender Offer Statement
- QXO's attempts to engage with Beacon's management have been met with delays, cancellations, and unreasonable preconditions.
Delay expected
15 January 2025 8:35 AM
Merger Announcement
- QXO's attempts to engage with Beacon have been met by delays, cancellations, and unreasonable preconditions.
- Beacon conditioned a meeting on QXO agreeing to a months-long delay before they could present their proposal to shareholders.
Better than expected
15 January 2025 8:35 AM
Merger Announcement
- QXO's offer of $124.25 per share represents a 37% premium over Beacon's 90-day unaffected share price, which is significantly better than the current market valuation.
- QXO highlights that Beacon's operating environment and capital markets have weakened since their initial proposal in November, making their offer more attractive.
Capital raise
6 January 2025 7:39 PM
Current Report
- The document mentions risks associated with raising additional equity or debt capital from public or private markets.
- It also notes the possibility of one or more additional private placements of common stock.
Better than expected
13 November 2024 8:03 AM
Quarterly Report
- The company's net income for the quarter and nine-month period was significantly better than the same periods last year, which had net losses.
- The company's cash position improved dramatically due to the capital raises.
- The company extinguished all long-term debt obligations.
Capital raise
13 November 2024 8:03 AM
Quarterly Report
- The company completed a $1 billion cash investment from Jacobs Private Equity II, LLC and certain minority co-investors.
- The company issued and sold 1,000,000 shares of Convertible Perpetual Preferred Stock and warrants exercisable for 219,010,074 shares of common stock.
- The company completed private placements of common stock and pre-funded warrants, generating approximately $4.12 billion in gross proceeds.
Worse than expected
13 November 2024 7:02 AM
Quarterly Report
- The company's Adjusted EBITDA was significantly worse than the same period last year, moving from a positive $665,000 to a negative $11.47 million.
Capital raise
13 November 2024 7:02 AM
Quarterly Report
- The company completed two private placements during the quarter, raising approximately $4.1 billion.
- The capital raise increased the number of common shares outstanding to 409.4 million.
Capital raise
5 November 2024 6:22 AM
Proxy Statement
- On June 6, 2024, the company issued 1,000,000 shares of Convertible Preferred Stock and warrants to purchase common stock to investors for $1,000,000,000 in cash.
- On July 25, 2024, the company issued and sold an aggregate of 67,833,699 shares of common stock at a price of $9.14 per share in a private placement.
Worse than expected
14 August 2024 8:47 AM
Quarterly Report
- The company reported a net loss for the quarter, compared to a net income in the same period last year, indicating worse than expected results.
Capital raise
14 August 2024 8:47 AM
Quarterly Report
- The company completed a $1 billion cash investment from Jacobs Private Equity II, LLC and minority co-investors.
- The company issued 1,000,000 shares of Convertible Perpetual Preferred Stock and warrants exercisable for 219,010,074 shares of common stock.
- The company completed private placements of common stock and pre-funded warrants, generating approximately $4.12 billion in gross proceeds.
Capital raise
14 August 2024 8:34 AM
Quarterly Report
- The company completed two private placements in July 2024, increasing its cash position to approximately $5 billion.
- The document mentions the risk of raising additional equity or debt capital from public or private markets to pursue the company's business plan, including potentially one or more additional private placements of common stock.
Worse than expected
14 August 2024 8:34 AM
Quarterly Report
- The company's net income decreased to a net loss, and adjusted EBITDA also declined to a loss, indicating worse financial performance compared to the same period last year.
Capital raise
29 July 2024 5:15 PM
Prospectus Supplement
- The company is registering the potential issuance of up to 261,010,074 shares of common stock upon the exercise of warrants.
- This includes 219,010,074 warrants and 42,000,000 pre-funded warrants.
Capital raise
22 July 2024 8:11 AM
Capital Raise Announcement
- QXO has raised $620 million through a new private placement of 67,833,699 shares at $9.14 per share.
- The company also closed a previously announced $3.5 billion private placement.
- The company may raise additional capital in the future to pursue its business plan.
Worse than expected
5 July 2024 4:05 PM
8-K Filing
- The company received a delisting notice from Nasdaq for not meeting the minimum publicly held shares requirement, which is a negative development.
Capital raise
5 July 2024 4:05 PM
8-K Filing
- QXO plans to issue 340,932,212 shares of its common stock through a private placement.
- The private placement is intended to bring the company back into compliance with Nasdaq listing rules.
Capital raise
27 June 2024 6:03 AM
Information Statement
- QXO Inc. is undertaking a private placement to raise approximately $3.5 billion.
- The private placement involves the issuance of 340,932,212 shares of common stock at $9.14 per share.
- The company is also issuing warrants to purchase 42,000,000 shares of common stock at $9.13999 per warrant, exercisable at $0.00001 per share.
Capital raise
14 June 2024 6:01 AM
Private Placement Announcement
- QXO has entered into purchase agreements for a $3.5 billion private placement.
- The company is selling 340,932,212 shares of common stock at $9.14 per share.
- The company is also selling 42,000,000 pre-funded warrants at $9.13999 per warrant.
- The private placement is expected to close early in the third quarter of 2024.
Capital raise
6 June 2024 4:46 PM
Merger Announcement
- The document mentions the possibility of raising additional equity or debt capital from public or private markets to pursue the Companys business plan following the closing of the equity investment.
- The document states that the amount of additional capital raised may significantly exceed the amount of the equity investment.
Better than expected
6 June 2024 4:46 PM
Merger Announcement
- The company completed a $1 billion equity investment, which is a significant positive development.
- The appointment of Brad Jacobs as CEO and Chairman is a strong signal of the company's commitment to growth.
- The company has a clear strategy for growth through acquisitions and organic expansion.
Capital raise
30 May 2024 11:59 AM
Special Meeting Results
- The document details a $1 billion equity investment from JPE and minority co-investors.
- The document mentions the possibility of raising additional equity or debt capital in the future.
Capital raise
28 May 2024 8:37 AM
Definitive Additional Materials
- The announcement is related to the equity investment contemplated by the Amended and Restated Investment Agreement by and among SilverSun Technologies, Inc. (to be renamed QXO, Inc.), JPE and other investors.
Capital raise
28 May 2024 6:05 AM
Supplement to Proxy Statement
- The document references an Amended and Restated Investment Agreement, indicating an equity investment.
- Jacobs Private Equity II, LLC is identified as the Principal Investor.
- The investment is contingent upon stockholder approvals and other customary closing conditions.
Capital raise
28 May 2024 6:02 AM
Current Report
- The document details a $1 billion equity investment from Jacobs Private Equity II, LLC and other investors.
- The document also mentions the possibility of raising additional equity or debt capital in the future.
Capital raise
24 May 2024 8:00 AM
Current Report
- The document mentions the possibility of raising additional equity or debt capital from public or private markets after the closing of the Equity Investment.
- The company may need to raise capital in an amount that may significantly exceed the amount of the Equity Investment.
Worse than expected
7 May 2024 4:21 PM
Quarterly Report
- Although revenue increased, net income from operations decreased, indicating that the company's profitability declined compared to the same period last year.
Capital raise
7 May 2024 4:21 PM
Quarterly Report
- The company entered into an Amended and Restated Investment Agreement with JPE for an aggregate investment of $1,000,000,000 in cash.
- The company's stockholders will receive an aggregate cash dividend of $17,400,000 from the proceeds of the Equity Investment.
- The transactions are subject to approval by the company's stockholders at a special meeting to be held May 30, 2024.
Capital raise
30 April 2024 9:42 AM
Proxy Statement
- The Company also intends to pursue capital-raising transactions, including through issuances of Common Stock, other equity securities and/or debt securities, which may be substantial in amount, and at prices which may be less than the trading price of the Common Stock, and otherwise on such terms as may be agreed by the Company.
Capital raise
17 April 2024 5:30 PM
Proxy Statement
- The document discusses an equity investment in SilverSun Technologies.
- Brad Jacobs has raised $30 billion of debt and equity capital in his career.
- The company anticipates raising additional equity or debt capital from public or private markets to pursue its business plan following the closing of the Equity Investment.
Worse than expected
15 April 2024 8:47 AM
Merger Announcement
- The spin-off of the existing business will no longer occur, which may be viewed negatively by some investors who were anticipating the separation.
Worse than expected
15 April 2024 8:46 AM
Merger Announcement
- The original plan for a spin-off of the company's existing business has been scrapped, which may be viewed negatively by some investors who were anticipating the spin-off.
Capital raise
15 March 2024 8:00 AM
Annual Results
- The company has entered into an investment agreement with Jacobs Private Equity II, LLC (JPE) and minority co-investors, resulting in a $1 billion cash investment.
- The investment agreement also includes a $2.5 million aggregate cash dividend to stockholders.
Better than expected
15 March 2024 8:00 AM
Annual Results
- The company reported record revenue and a significant increase in EBITDA plus share-based compensation, indicating better than expected financial performance.
Delay expected
15 March 2024 8:00 AM
Annual Results
- The merger with Rhodium Enterprises was terminated after a year of failing to clear regulatory hurdles.
Capital raise
15 March 2024 7:30 AM
Merger Announcement
- The document details a $1 billion equity investment from JPE and minority co-investors.
- It also mentions the possibility of raising additional equity or debt capital in the future to pursue acquisitions.
Worse than expected
14 March 2024 3:31 PM
Annual Results
- The company reported a net loss of $1,070,095 for the year ended December 31, 2023, which is worse than the net loss of $282,219 for the year ended December 31, 2022.
Capital raise
14 March 2024 3:31 PM
Annual Results
- SilverSun entered into an Investment Agreement with Jacobs Private Equity II, LLC, providing for an aggregate investment of $1,000,000,000 in cash in SilverSun.
- The Investors will receive 1,000,000 shares of Convertible Perpetual Preferred Stock and warrants to purchase approximately 219 million shares of SilverSun common stock.
- Following the Closing, the Investors will own approximately 99.85% of SilverSun common stock on an as-converted, as-exercised basis.
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