TPI Composites files for Chapter 11 bankruptcy, plans delisting from Nasdaq
HUMBL, Inc. (OTC Pink: HMBL), a Delaware-incorporated wholesale durable goods company, recently announced the designation of a new class of preferred stock. On July 17, 2024, the company filed a Certificate of Designation with the Delaware Secretary of State to introduce Series D preferred stock.
This action was authorized by HUMBL's Board of Directors under its "blank check" preferred stock provision, which allows the board to establish new series of preferred stock with specified voting rights, preferences, and other terms.
The Board of Directors has authorized 250,000 shares of Series D preferred stock, each carrying 500,000 votes of HUMBL’s common stock. Notably, these shares do not possess any liquidation preference, rights to dividends, conversion rights, or redemption obligations. In a significant move, 100,000 shares of the newly created Series D preferred stock have been issued to Brian Foote, the President and CEO of HUMBL, as compensation for services rendered.
InvestingPro Insights
In light of HUMBL, Inc.'s recent announcement regarding the introduction of Series D preferred stock, it is pertinent to consider the company's financial health and market performance to understand the broader context of this decision. According to real-time data from InvestingPro, HUMBL's market capitalization stands at a modest $3.65 million, reflecting its status as a niche player in the industry. The company has exhibited a staggering revenue growth of 914.94% over the last twelve months as of Q1 2024, which could signal potential for future expansion despite current financial challenges.
However, InvestingPro Tips highlight several areas of concern for investors. HUMBL has been operating with negative gross profit margins, at -30.81%, and has reported significant losses, with an operating income margin of -1028.25%. Additionally, the company's stock price has experienced severe volatility, with a 1-year price total return of -80.95%, indicating a sharp decline in investor confidence. It is noted that HUMBL does not pay dividends, which may affect the attractiveness of the stock for income-focused investors.
These financial metrics and InvestingPro Tips should be considered by shareholders and potential investors when assessing HUMBL's strategy of issuing new preferred stock to its CEO. For those seeking a deeper analysis, InvestingPro offers an additional 11 tips on HUMBL, which can be accessed at https://www.investing.com/pro/HMBL.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.