Nucor earnings beat by $0.08, revenue fell short of estimates
Lendway, Inc., an agriculture production company, has amended its financial agreement with Air T, Inc., securing an additional $1 million in funding. The arrangement, disclosed in a recent SEC filing, enhances the company's borrowing capacity to a total of $3.5 million to support its operations.
The Minneapolis-based company, which operates under the industrial classification of Agriculture Production - Crops, entered into the Amended and Restated Delayed Draw Term Note on September 27, 2024. This agreement allows Lendway to draw funds until August 15, 2026, with the note maturing on August 15, 2029. Lendway's outstanding debt under this note carries an 8% interest rate, which could increase by 3% in the event of default.
Significantly, the Lender, Air T, Inc., holds more than 10% of Lendway's common stock and is part of a group of shareholders owning approximately 40% of the company. The involvement of Lendway's executive leadership with the Lender is notable, with Co-CEOs Mark R. Jundt and Daniel C. Philp, as well as director Nicholas J. Swenson, holding positions at Air T, Inc. Despite these connections, the transaction received prior approval from the Audit Committee of Lendway's Board of Directors and was voted on solely by independent directors, in line with the company's Related Person Transaction Approval Policy.
This financial move comes as Lendway, Inc., previously known as Insignia Systems Inc/MN, continues to navigate the complexities of the agriculture sector. The company's stock is listed on The Nasdaq Stock Market LLC under the ticker LDWY. The additional capital is expected to provide Lendway with the necessary resources to sustain and potentially expand its operations.
In other recent news, Lendway, Inc. announced a series of significant updates. The company's Annual Meeting of Stockholders concluded with the unanimous re-election of its board of directors and approval of executive compensation. The directors re-elected were Mary H. Herfurth, Chad B. Johnson, Mark R. Jundt, Matthew R. Kelly, Daniel C. Philp, and Nicholas J. Swenson. The company's executive compensation plan received majority support, with 236,710 votes in favor.
Moreover, Lendway, Inc. revealed changes in its leadership team. Mark R. Jundt and Daniel C. Philp have been appointed as Co-Chief Executive Officers, effective from July 1, 2024. In line with its growth strategy, the company also announced the appointment of Elizabeth "Biz" McShane as its new Chief Financial Officer, and William Prescott as the new Sales Manager for its subsidiary, Bloomia.
In another important decision, Boulay PLLP was ratified as the independent registered public accounting firm for the upcoming fiscal year, ending December 31, 2024. These recent developments are part of Lendway's ongoing efforts to manage and invest in agricultural ventures both domestically and internationally.
InvestingPro Insights
Lendway's recent $1 million funding boost aligns with its current financial position, as revealed by InvestingPro data. The company's market cap stands at a modest $5.88 million, underscoring the significance of this additional capital. InvestingPro Tips highlight that Lendway's liquid assets exceed short-term obligations, which may have contributed to its ability to secure this increased credit line.
The company's revenue growth is noteworthy, with a substantial 363.91% increase in the last twelve months as of Q2 2024, reaching $24.81 million. This growth trajectory could explain the need for additional funding to support expanding operations. However, an InvestingPro Tip cautions that Lendway suffers from weak gross profit margins, which is reflected in the 23.66% gross profit margin for the same period.
Investors should note that Lendway's stock has experienced significant volatility, with a 42.52% price decline over the past six months. The current price of $3.56 is well below the InvestingPro Fair Value estimate of $4.95, suggesting potential undervaluation despite recent challenges.
For a more comprehensive analysis, InvestingPro offers 8 additional tips for Lendway, providing deeper insights into the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.