SCHEDULE: Corre Parties Sell Team Inc. Shares, Reduce Stake

Corre entities have sold a substantial portion of their Team Inc. common stock holdings to InspectionTech Holdings LP, reducing their beneficial ownership.

Summary

• The filing details the sale of common stock in Team Inc. by Corre Opportunities Qualified Master Fund, LP, Corre Horizon Fund, LP, and Corre Horizon II Fund, LP to InspectionTech Holdings LP.
• The aggregate sale consideration was $56,953,573 for 1,054,719 shares from Qualified Master Fund, LP, 249,942 shares from Corre Horizon Fund, LP, and 299,665 shares from Corre Horizon II Fund, LP.
• As a result of this transaction and a notice delivered on August 7, 2026, the reporting persons have decreased their beneficial ownership limitation to 4.99%, and are no longer considered reporting persons under Schedule 13D.
• The transaction closed on August 6, 2026.
• The Corre parties have waived their rights to Board Observers and Board Nomination Rights, except for the Lender Director, until December 31, 2027, or the Additional Buyer Director Designation Date.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a neutral to slightly negative development, as it signifies a significant reduction in beneficial ownership and a shift in control away from the reporting persons, though the transaction itself is a sale of existing holdings.

Positives

• The Corre parties received significant proceeds of $56,953,573 from the sale of their Team Inc. shares.
• The transaction was completed on the agreement date, August 6, 2026, indicating efficient execution.

Negatives

• The Corre parties have significantly reduced their stake and influence in Team Inc., relinquishing board nomination rights and observer rights.
• The filing indicates that the reporting persons are no longer reporting persons under Schedule 13D, signifying a substantial divestment.
• The sale of shares by major holders could be interpreted as a lack of confidence in the company's future prospects by those holders.

Risks

• The filing mentions customary standstill restrictions on Corre and the Corre Holders, which limit their future actions regarding Team Inc.
• The waiver of board nomination rights and observer rights reduces the Corre parties' ability to influence corporate strategy and governance.
• The agreement includes provisions for potential future equity offerings by Team Inc., with specific conditions under which Corre parties may or may not be allowed to participate, potentially diluting their remaining stake.

Future Outlook

The filing does not provide forward-looking statements or guidance from Team Inc. management. It primarily details a transaction between selling shareholders and a buyer.

Management Comments

• Mr. Eric Soderlund has retired from his positions with Corre Partners Advisors, LLC and Corre Partners Management, LLC and has ceased to have or share voting or dispositive power with respect to the securities that are the subject of this filing.
• The Reporting Person delivered a notice to the Issuer that the Reporting Person was decreasing the Beneficial Ownership Limitation to 4.99%, consistent with Section 3(E) of Warrant No. 2.
• As a result, the Reporting Persons are no longer reporting persons under Schedule 13D.

Industry Context

StockSavvy.ai notes that this transaction represents a significant shift in the shareholder base of Team Inc., with a large block of shares changing hands. The involvement of InspectionTech Holdings LP suggests a new significant stakeholder entering the picture, potentially with strategic intentions.

Management Changes

Corporate Governance

Related Party Transactions

• The filing details a securities purchase agreement between Corre entities (sellers) and InspectionTech Holdings LP (buyer).
• Corre Partners Management, LLC acts as the investment manager for the selling funds and is a party to the agreement.
• The transaction involves the sale of shares held by Corre Opportunities Qualified Master Fund, LP, Corre Horizon Fund, LP, and Corre Horizon II Fund, LP.

Stakeholder Impact

• Shareholders: The sale of a large block of shares may impact share price and liquidity. The new controlling entity, InspectionTech Holdings LP, may have different strategic objectives.
• Management: The waiver of board nomination rights and potential removal of the Lender Director could lead to changes in board composition and management oversight.
• Creditors: The transaction itself does not appear to directly impact creditors, but any future strategic shifts by the new major stakeholder could have indirect effects.

Next Steps

• The Corre parties have waived their rights to Board Observers and Board Nomination Rights, except for the Lender Director, until December 31, 2027, or the Additional Buyer Director Designation Date.
• The Corre parties will consult with Buyer regarding their rights to nominate a director to the Issuer's Board of Directors.
• Upon Buyer's request, the Corre parties will use reasonable best efforts to obtain the resignation of the Lender Director.

Key Dates

Recommendation

The filing details a significant transaction where major shareholders are selling their stakes. While this indicates a reduction in their commitment and potential lack of confidence, it also introduces a new significant buyer. Without further information on the buyer's intentions or Team Inc.'s underlying performance, a 'hold' recommendation is prudent, reflecting the uncertainty and potential for both positive and negative outcomes.

Keywords

Securities Purchase Agreement, Schedule 13D, Beneficial Ownership, Warrants, Board Rights Agreement, Director Nomination, Divestment, Team Inc.